Legislature(2019 - 2020)BELTZ 105 (TSBldg)

04/11/2019 01:30 PM LABOR & COMMERCE

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

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

Audio Topic
01:36:56 PM Start
01:37:26 PM SB52
02:45:03 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
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                         April 11, 2019                                                                                         
                           1:36 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)                                                                      
03/28/19       (S)       Heard & Held                                                                                           
03/28/19       (S)       MINUTE(L&C)                                                                                            
04/02/19       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/02/19       (S)       Heard & Held                                                                                           
04/02/19       (S)       MINUTE(L&C)                                                                                            
04/04/19       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/04/19       (S)       -- MEETING CANCELED --                                                                                 
04/09/19       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/09/19       (S)       Heard & Held                                                                                           
04/09/19       (S)       MINUTE(L&C)                                                                                            
04/11/19       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
TOM WRIGHT, Staff                                                                                                               
Senator Mia Costello                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified on behalf of the sponsor regarding                                                              
amendments.                                                                                                                     
                                                                                                                                
SENATOR PETER MICCICHE                                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified as sponsor of SB 52.                                                                            
                                                                                                                                
EDRA MORLEDGE, Staff                                                                                                            
SENATOR PETER MICCICHE                                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Answered questions on behalf of the sponsor                                                               
of SB 52.                                                                                                                       
                                                                                                                                
ERIKA MCCONNELL, Director                                                                                                       
Alcohol and Marijuana Control Office (AMCO)                                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Answered question during the hearing on SB                                                                
52.                                                                                                                             
                                                                                                                                
ANNA BRAWLEY, Title 4 Project Review Coordinator                                                                                
Senior Associate                                                                                                                
Agnew Beck Consulting                                                                                                           
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Answered questions on behalf of the sponsor                                                               
of SB 52.                                                                                                                       
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:36:56 PM                                                                                                                    
CHAIR  LORA  REINBOLD  called  the   Senate  Labor  and  Commerce                                                             
Standing Committee meeting  to order at 1:36 p.m.  Present at the                                                               
call  to order  were Senators  Costello, Gray-Jackson,  Birch and                                                               
Chair Reinbold. Senator Bishop joined shortly thereafter.                                                                       
                                                                                                                                
         SB 52-ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG                                                                      
                                                                                                                                
1:37:26 PM                                                                                                                    
CHAIR REINBOLD  announced that the  only order of  business would                                                               
be SENATE BILL  NO. 52, "An Act relating  to alcoholic beverages;                                                               
relating  to the  regulation of  manufacturers, wholesalers,  and                                                               
retailers   of  alcoholic   beverages;   relating  to   licenses,                                                               
endorsements,   and   permits  involving   alcoholic   beverages;                                                               
relating  to  common carrier  approval  to  transport or  deliver                                                               
alcoholic beverages;  relating to the Alcoholic  Beverage Control                                                               
Board;  relating  to   offenses  involving  alcoholic  beverages;                                                               
amending  Rule 17(h),  Alaska Rules  of Minor  Offense Procedure;                                                               
and providing for an effective date."                                                                                           
                                                                                                                                
1:37:51 PM                                                                                                                    
SENATOR  COSTELLO moved  to  adopt Amendment  1,  work order  31-                                                               
LS0004\U.18, Bruce, 4/11/19.                                                                                                    
                                                                                                                                
                          AMENDMENT 1                                                                                       
                                                                                                                                
     Page 56, following line 3:                                                                                                 
     Insert a new bill section to read:                                                                                         
       "* Sec. 27. AS 04.11.280 is amended by adding new                                                                    
     subsections to read:                                                                                                       
          (c)  A license is automatically transferred as                                                                        
        requested in an application for transfer of the                                                                         
     license to another person if                                                                                               
               (1) the board does not approve or deny the                                                                       
         application within 60 days after receiving the                                                                         
     application;                                                                                                               
               (2) the application is for transfer of a                                                                         
               (A) restaurant or eating place license under                                                                     
     AS 04.09.210;                                                                                                              
               (B) seasonal restaurant or eating place                                                                          
     tourism license under AS 04.09.350;                                                                                        
               (C) restaurant or eating place license under                                                                     
     AS 04.09.210 with one or more endorsements; or                                                                             
               (D) seasonal restaurant or eating place                                                                          
      tourism license under AS 04.09.350 with one or more                                                                       
     endorsements; and                                                                                                          
               (3) the applicant for transfer of a license                                                                      
      has not previously had a license or permit suspended                                                                      
     or revoked under AS 04.11.370.                                                                                             
          (d) The board may suspend or revoke a license                                                                         
     that  was automatically  transferred to  another person                                                                    
     under (c) of this  section if, after receiving criminal                                                                    
     justice   information   and  records   obtained   under                                                                    
     AS 04.11.295,  the board  determines that  the licensee                                                                    
     does  not meet  the  qualifications for  transfer of  a                                                                    
     license to another person under this title."                                                                               
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 58, line 29:                                                                                                          
          Delete "sec. 32"                                                                                                      
          Insert "sec. 33"                                                                                                      
                                                                                                                                
     Page 60, line 25:                                                                                                          
          Delete "sec. 37"                                                                                                      
          Insert "sec. 38"                                                                                                      
                                                                                                                                
     Page 62, line 20:                                                                                                          
          Delete "sec. 39"                                                                                                      
          Insert "sec. 40"                                                                                                      
                                                                                                                                
     Page 66, line 29:                                                                                                          
          Delete "sec. 45"                                                                                                      
          Insert "sec. 46"                                                                                                      
                                                                                                                                
     Page 71, line 7:                                                                                                           
          Delete "sec. 49"                                                                                                      
          Insert "sec. 50"                                                                                                      
                                                                                                                                
     Page 71, line 13:                                                                                                          
          Delete "sec. 49"                                                                                                      
          Insert "sec. 50"                                                                                                      
                                                                                                                                
     Page 114, line 26:                                                                                                         
          Delete "Sections 165(a) and 166"                                                                                      
          Insert "Sections 166(a) and 167"                                                                                      
                                                                                                                                
     Page 114, lines 29 - 30:                                                                                                   
          Delete "30, 80 - 83, 85 - 130, 135 - 138, 140,                                                                        
     and 148 - 150"                                                                                                             
          Insert "31, 81 - 84, 86 - 131, 136 - 139, 141,                                                                        
     and 149 - 151"                                                                                                             
                                                                                                                                
     Page 115, line 2:                                                                                                          
          Delete "sec. 123"                                                                                                     
          Insert "sec. 124"                                                                                                     
                                                                                                                                
     Page 115, line 3:                                                                                                          
          Delete "sec. 124"                                                                                                     
          Insert "sec. 125"                                                                                                     
          Delete "sec. 129"                                                                                                     
          Insert "sec. 130"                                                                                                     
                                                                                                                                
     Page 115, line 8:                                                                                                          
          Delete "sec. 170"                                                                                                     
          Insert "sec. 171"                                                                                                     
                                                                                                                                
     Page 115, line 11:                                                                                                         
          Delete "70, and 165"                                                                                                  
          Insert "71, and 166"                                                                                                  
                                                                                                                                
     Page 115, line 13:                                                                                                         
          Delete "70, and 165"                                                                                                  
          Insert "71, and 166"                                                                                                  
                                                                                                                                
     Page 115, line 22:                                                                                                         
          Delete "sec. 160"                                                                                                     
          Insert "sec. 161"                                                                                                     
                                                                                                                                
     Page 115, line 28:                                                                                                         
          Delete "sec. 160"                                                                                                     
          Insert "sec. 161"                                                                                                     
                                                                                                                                
     Page 116, line 3:                                                                                                          
          Delete "sec. 159"                                                                                                     
          Insert "sec. 160"                                                                                                     
                                                                                                                                
     Page 116, line 7:                                                                                                          
          Delete "sec. 159"                                                                                                     
          Insert "sec. 160"                                                                                                     
                                                                                                                                
     Page 116, line 11:                                                                                                         
          Delete "sec. 159"                                                                                                     
          Insert "sec. 160"                                                                                                     
                                                                                                                                
     Page 116, line 14:                                                                                                         
          Delete "sec. 159"                                                                                                     
          Insert "sec. 160"                                                                                                     
                                                                                                                                
     Page 116, line 17:                                                                                                         
          Delete "sec. 159"                                                                                                     
          Insert "sec. 160"                                                                                                     
                                                                                                                                
     Page 116, line 20:                                                                                                         
          Delete "sec. 159"                                                                                                     
          Insert "sec. 160"                                                                                                     
                                                                                                                                
     Page 116, line 23:                                                                                                         
          Delete "sec. 159"                                                                                                     
          Insert "sec. 160"                                                                                                     
                                                                                                                                
     Page 116, line 28:                                                                                                         
          Delete "sec. 159"                                                                                                     
          Insert "sec. 160"                                                                                                     
                                                                                                                                
     Page 117, line 1:                                                                                                          
          Delete "sec. 159"                                                                                                     
          Insert "sec. 160"                                                                                                     
                                                                                                                                
     Page 117, line 5:                                                                                                          
          Delete "sec. 159"                                                                                                     
          Insert "sec. 160"                                                                                                     
                                                                                                                                
     Page 117, line 9:                                                                                                          
          Delete "sec. 159"                                                                                                     
          Insert "sec. 160"                                                                                                     
                                                                                                                                
     Page 117, line 13:                                                                                                         
          Delete "sec. 159"                                                                                                     
          Insert "sec. 160"                                                                                                     
                                                                                                                                
     Page 117, line 17:                                                                                                         
          Delete "sec. 159"                                                                                                     
          Insert "sec. 160"                                                                                                     
                                                                                                                                
     Page 117, line 21:                                                                                                         
          Delete "sec. 159"                                                                                                     
          Insert "sec. 160"                                                                                                     
                                                                                                                                
     Page 119, line 15:                                                                                                         
          Delete "Sections 32, 37, 39, 45, 49, 54, 160,                                                                         
     165(a), 165(c)(8), 166, and 167"                                                                                           
          Insert "Sections 33, 38, 40, 46, 50, 55, 161,                                                                         
     166(a), 166(c)(8), 167, and 168"                                                                                           
                                                                                                                                
     Page 119, line 17:                                                                                                         
          Delete "Section 164"                                                                                                  
          Insert "Section 165"                                                                                                  
                                                                                                                                
     Page 119, line 18:                                                                                                         
          Delete "secs. 168 and 169"                                                                                            
     Insert "secs 169 and 170"                                                                                                  
                                                                                                                                
CHAIR REINBOLD objected for discussion purposes.                                                                                
                                                                                                                                
1:38:34 PM                                                                                                                    
TOM   WRIGHT,  Staff,   Senator   Mia   Costello,  Alaska   State                                                               
Legislature,  Juneau,  explained  Amendment  1,  work  order  31-                                                               
LS0004\U.18.  This would  require the  board to  issue a  license                                                               
within 60  days. However, some  conditions apply,  including that                                                               
the license cannot be issued  if the applicant has previously had                                                               
a license suspended  or revoked. The board may  suspend or revoke                                                               
a license  that was automatically transferred  to another person,                                                               
if  after  receiving  criminal justice  information  and  records                                                               
gained  under AS  04.11.295, the  board  determines the  licensee                                                               
does not meet the qualifications  for transfer of the license. He                                                               
indicated that the  bill sponsor would like  this language added,                                                               
particularly the language in subsection (d).                                                                                    
                                                                                                                                
1:40:06 PM                                                                                                                    
ERIKA MCCONNELL, Director, Alcohol  and Marijuana Control Office,                                                               
Anchorage, responded  that the  she has  not seen  the amendments                                                               
since the amendments are not posted.                                                                                            
                                                                                                                                
1:40:39 PM                                                                                                                    
At-ease.                                                                                                                        
                                                                                                                                
1:43:15 PM                                                                                                                    
CHAIR REINBOLD reconvened the meeting.                                                                                          
                                                                                                                                
1:43:20 PM                                                                                                                    
CHAIR REINBOLD  remarked that  some of  the amendments  were just                                                               
submitted  and were  not yet  uploaded  to BASIS.  She asked  the                                                               
sponsor's staff to continue.                                                                                                    
                                                                                                                                
1:43:49 PM                                                                                                                    
MR. WRIGHT reiterated  the effect of Amendment 1.  For example, a                                                               
license for  a restaurant that  serves alcoholic  beverages would                                                               
be  automatically  transferred  as  per  the  application.  These                                                               
transfers would  be automatically granted  if the board  does not                                                               
approve or  deny the  application within 60  days. The  board may                                                               
suspend or  revoke a license  that was  automatically transferred                                                               
to   another  person,   if  after   receiving  criminal   justice                                                               
information  and  records  gained  und AS  04.11.295,  the  board                                                               
determines  the licensee  does not  meet  the qualifications  for                                                               
transfer of the license.                                                                                                        
                                                                                                                                
1:44:50 PM                                                                                                                    
SENATOR  GRAY-JACKSON remarked  that she  would like  to ask  Ms.                                                               
McConnell a question.                                                                                                           
                                                                                                                                
CHAIR  REINBOLD  reminded  her that  the  amendments  were  being                                                               
uploaded.                                                                                                                       
                                                                                                                                
1:45:10 PM                                                                                                                    
CHAIR REINBOLD solicited  a motion to move Amendment  1, U.18, to                                                               
the bottom of the calendar.                                                                                                     
                                                                                                                                
1:45:31 PM                                                                                                                    
SENATOR BISHOP moved to table Amendment  1, U.18 to the bottom of                                                               
the calendar.                                                                                                                   
                                                                                                                                
There being  no further objection,  Amendment 1 was moved  to the                                                               
bottom of the calendar.                                                                                                         
                                                                                                                                
1:45:53 PM                                                                                                                    
SENATOR COSTELLO moved to adopt Amendment  2 to SB 52, work order                                                               
31-LS0004\U.2, Bruce, 3/29/19:                                                                                                  
                                                                                                                                
                          AMENDMENT 2                                                                                       
                                                                                                                                
     Page 65, lines 23 - 26:                                                                                                    
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 66, line 29:                                                                                                          
          Delete "sec. 45"                                                                                                      
          Insert "sec. 44"                                                                                                      
                                                                                                                                
     Page 71, line 7:                                                                                                           
          Delete "sec. 49"                                                                                                      
          Insert "sec. 48"                                                                                                      
                                                                                                                                
     Page 71, line 13:                                                                                                          
          Delete "sec. 49"                                                                                                      
          Insert "sec. 48"                                                                                                      
                                                                                                                                
     Page 114, line 26:                                                                                                         
          Delete "Sections 165(a) and 166"                                                                                      
          Insert "Sections 164(a) and 165"                                                                                      
                                                                                                                                
     Page 114, lines 29 - 30:                                                                                                   
          Delete "80 - 83, 85 - 130, 135 - 138, 140, and                                                                        
     148 - 150"                                                                                                                 
          Insert "79 - 82, 84 - 129, 134 - 137, 139, and                                                                        
     147 - 149"                                                                                                                 
                                                                                                                                
     Page 115, line 2:                                                                                                          
          Delete "sec. 123"                                                                                                     
          Insert "sec. 122"                                                                                                     
                                                                                                                                
     Page 115, line 3:                                                                                                          
          Delete "sec. 124"                                                                                                     
          Insert "sec. 123"                                                                                                     
          Delete "sec. 129"                                                                                                     
          Insert "sec. 128"                                                                                                     
                                                                                                                                
     Page 115, line 8:                                                                                                          
          Delete "sec. 170"                                                                                                     
          Insert "sec. 169"                                                                                                     
                                                                                                                                
     Page 115, line 11:                                                                                                         
          Delete "70, and 165"                                                                                                  
          Insert "69, and 164"                                                                                                  
                                                                                                                                
     Page 115, line 13:                                                                                                         
          Delete "70, and 165"                                                                                                  
          Insert "69, and 164"                                                                                                  
                                                                                                                                
     Page 115, line 22:                                                                                                         
          Delete "sec. 160"                                                                                                     
          Insert "sec. 159"                                                                                                     
                                                                                                                                
     Page 115, line 28:                                                                                                         
          Delete "sec. 160"                                                                                                     
          Insert "sec. 159"                                                                                                     
                                                                                                                                
     Page 116, line 3:                                                                                                          
          Delete "sec. 159"                                                                                                     
          Insert "sec. 158"                                                                                                     
                                                                                                                                
     Page 116, line 7:                                                                                                          
          Delete "sec. 159"                                                                                                     
          Insert "sec. 158"                                                                                                     
                                                                                                                                
     Page 116, line 11:                                                                                                         
          Delete "sec. 159"                                                                                                     
          Insert "sec. 158"                                                                                                     
                                                                                                                                
     Page 116, line 14:                                                                                                         
          Delete "sec. 159"                                                                                                     
          Insert "sec. 158"                                                                                                     
                                                                                                                                
     Page 116, line 17:                                                                                                         
          Delete "sec. 159"                                                                                                     
          Insert "sec. 158"                                                                                                     
                                                                                                                                
     Page 116, line 20:                                                                                                         
          Delete "sec. 159"                                                                                                     
          Insert "sec. 158"                                                                                                     
                                                                                                                                
     Page 116, line 23:                                                                                                         
          Delete "sec. 159"                                                                                                     
          Insert "sec. 158"                                                                                                     
                                                                                                                                
     Page 116, line 28:                                                                                                         
          Delete "sec. 159"                                                                                                     
          Insert "sec. 158"                                                                                                     
                                                                                                                                
     Page 117, line 1:                                                                                                          
          Delete "sec. 159"                                                                                                     
          Insert "sec. 158"                                                                                                     
                                                                                                                                
     Page 117, line 5:                                                                                                          
          Delete "sec. 159"                                                                                                     
          Insert "sec. 158"                                                                                                     
                                                                                                                                
     Page 117, line 9:                                                                                                          
          Delete "sec. 159"                                                                                                     
          Insert "sec. 158"                                                                                                     
                                                                                                                                
     Page 117, line 13:                                                                                                         
          Delete "sec. 159"                                                                                                     
          Insert "sec. 158"                                                                                                     
                                                                                                                                
     Page 117, line 17:                                                                                                         
          Delete "sec. 159"                                                                                                     
          Insert "sec. 158"                                                                                                     
                                                                                                                                
     Page 117, line 21:                                                                                                         
          Delete "sec. 159"                                                                                                     
          Insert "sec. 158"                                                                                                     
                                                                                                                                
     Page 119, line 15:                                                                                                         
          Delete "45, 49, 54, 160, 165(a), 165(c)(8), 166,                                                                      
     and 167"                                                                                                                   
          Insert "44, 48, 53, 159, 164(a), 164(c)(8), 165,                                                                      
     and 166"                                                                                                                   
                                                                                                                                
     Page 119, line 17:                                                                                                         
          Delete "Section 164"                                                                                                  
          Insert "Section 163"                                                                                                  
                                                                                                                                
     Page 119, line 18:                                                                                                         
          Delete "secs. 168 and 169"                                                                                            
          Insert "secs. 167 and 168"                                                                                            
                                                                                                                                
CHAIR REINBOLD objected for discussion purposes.                                                                                
                                                                                                                                
1:46:16 PM                                                                                                                    
MR. WRIGHT explained  Amendment 2, which would  delete Section 44                                                               
of  SB  52. That  language  would  grant the  executive  director                                                               
additional  powers   to  place  restrictions  or   conditions  on                                                               
licenses.                                                                                                                       
                                                                                                                                
1:46:50 PM                                                                                                                    
SENATOR COSTELLO  explained Amendment 2 would  delete Section 44.                                                               
She directed attention to page 65 and read:                                                                                     
                                                                                                                                
       * Sec. 44. AS 04.11.395 is amended by adding a new                                                                       
     subsection to read:                                                                                                        
          (b) Except  for a conditional  contractor's permit                                                                    
     issued  under AS  04.09.690, the  director may,  in the                                                                    
     best  interests of  the  public,  impose conditions  or                                                                    
     restrictions on a permit issued under this chapter.                                                                        
                                                                                                                                
She  explained the  intention of  Amendment 2  is to  sustain the                                                               
traditional  powers  of  boards.  The board  has  the  power  and                                                               
conveys instructions  to the executive  director, who  will carry                                                               
out the intentions of the board.                                                                                                
                                                                                                                                
MR.  WRIGHT  explained that  most  of  Amendment 2  pertained  to                                                               
renumbering the sections.                                                                                                       
                                                                                                                                
1:47:57 PM                                                                                                                    
SENATOR  BIRCH asked  how often  the  board meets.  He asked  for                                                               
assurances that it  would not affect or stall  licenses until the                                                               
next board meeting.                                                                                                             
                                                                                                                                
MR. WRIGHT  answered that the  board meets quarterly, but  it can                                                               
meet telephonically, as needed.                                                                                                 
                                                                                                                                
SENATOR BIRCH  asked for further  clarification that if  an issue                                                               
arose between the quarterly meetings  that the executive director                                                               
could poll the board and obtain a sense of the board.                                                                           
                                                                                                                                
MR. WRIGHT answered yes.                                                                                                        
                                                                                                                                
1:49:24 PM                                                                                                                    
SENATOR MICCICHE,  Alaska State  Legislature, Juneau,  as sponsor                                                               
of  SB 52,  stated he  did not  support Amendment  2. This  works                                                               
against  [Amendment   1]  U.18.   He  said  that   currently  the                                                               
application  will  either be  approved  or  denied. This  section                                                               
allows the executive  director to work with the  board to develop                                                               
conditions  for  approval.  If  someone  fails  a  public  safety                                                               
background  check,   the  previous   amendment  would   allow  an                                                               
automatic continuance of  the license. He said  that if Amendment                                                               
2  were to  pass,  the board  would  not be  able  to approve  an                                                               
application  if  conditions  were   placed  on  the  license.  He                                                               
acknowledged  that  he  understood   the  intent,  but  it  would                                                               
actually  place obstacles  in the  approval  process rather  than                                                               
streamlining the process.                                                                                                       
                                                                                                                                
1:51:18 PM                                                                                                                    
At-ease.                                                                                                                        
                                                                                                                                
1:52:10 PM                                                                                                                    
CHAIR REINBOLD reconvened the meeting.                                                                                          
                                                                                                                                
1:52:15 PM                                                                                                                    
SENATOR COSTELLO said that after  speaking with the bill sponsor,                                                               
she believes a  conceptual amendment would meet  her concern that                                                               
the  board must  hold the  authority and  the executive  director                                                               
must carry  out the  instructions from the  board. It  would also                                                               
address the  concern that without  Section 44,  some applications                                                               
could  be delayed  because there  would not  be any  allowance to                                                               
provide any conditions to an application.                                                                                       
                                                                                                                                
1:53:01 PM                                                                                                                    
SENATOR COSTELLO  made a motion  to adopt a  Conceptual Amendment                                                               
to Amendment 2. On page 65,  line 25, delete, "the director may,"                                                               
and  replace it  with, "the  board may."  She described  it as  a                                                               
fairly simple concept.                                                                                                          
                                                                                                                                
1:53:57 PM                                                                                                                    
At-ease.                                                                                                                        
                                                                                                                                
1:54:43 PM                                                                                                                    
CHAIR REINBOLD reconvened the meeting.                                                                                          
                                                                                                                                
There being  no objection, the Conceptual  Amendment to Amendment                                                               
2 was adopted.                                                                                                                  
                                                                                                                                
CHAIR  REINBOLD  brought  Amendment  2, as  amended,  before  the                                                               
committee.                                                                                                                      
                                                                                                                                
SENATOR COSTELLO clarified for the  record that conditions can be                                                               
imposed  on an  application and  doing so  moves the  application                                                               
process along  rather than creating  a delay. However,  the board                                                               
would provide the conditions rather  than the executive director,                                                               
who serves the board.                                                                                                           
                                                                                                                                
SENATOR MICCICHE agreed to Amendment 2, as amended.                                                                             
                                                                                                                                
CHAIR REINBOLD removed her objection to Amendment 2, as amended.                                                                
                                                                                                                                
There being  no further objection,  Amendment 2, as  amended, was                                                               
adopted.                                                                                                                        
                                                                                                                                
1:56:08 PM                                                                                                                    
SENATOR  COSTELLO moved  to  adopt Amendment  3,  work order  31-                                                               
LS0004\U.9, Bruce, 4/5/19:                                                                                                      
                                                                                                                                
                          AMENDMENT 3                                                                                       
                                                                                                                                
     Page 34, line 5, following "roof":                                                                                         
          Insert ", for consumption on the site of the                                                                          
     large resort"                                                                                                              
                                                                                                                                
     Page 94, following line 5:                                                                                                 
          Insert a new subsection to read:                                                                                      
          "(f)  Notwithstanding (a) of this section, a                                                                          
     person   may  remove   alcoholic  beverages   from  the                                                                    
     licensed  premises  of  a beverage  dispensary  license                                                                    
     under  AS 04.09.200 or  a  beverage dispensary  tourism                                                                    
     license   under   AS 04.09.340   for   consumption   on                                                                    
     unlicensed portions  of a large resort  if the licensee                                                                    
     holds a large resort endorsement under AS 04.09.440."                                                                      
                                                                                                                                
     Reletter the following subsection accordingly.                                                                             
                                                                                                                                
CHAIR REINBOLD objected for discussion purposes.                                                                                
                                                                                                                                
MR. WRIGHT explained Amendment 3. This would allow a person at a                                                                
large resort  who was served a  drink to transport it  to another                                                               
part of the resort without the necessity to have a server do so.                                                                
                                                                                                                                
1:57:18 PM                                                                                                                    
CHAIR REINBOLD offered her support for Amendment 3.                                                                             
                                                                                                                                
1:57:37 PM                                                                                                                    
SENATOR GRAY-JACKSON offered her support for Amendment 3.                                                                       
                                                                                                                                
1:57:45 PM                                                                                                                    
CHAIR REINBOLD removed her objection. There being no further                                                                    
objection, Amendment 3 was adopted.                                                                                             
                                                                                                                                
1:58:01 PM                                                                                                                    
CHAIR REINBOLD moved to adopt Amendment 4, work order 31-                                                                       
LS0004\U.14, Bruce, 4/10/19:                                                                                                    
                                                                                                                                
                          AMENDMENT 4                                                                                       
                                                                                                                                
     Page 6, line 12:                                                                                                           
          Delete "1,250"                                                                                                        
          Insert "1,000"                                                                                                        
                                                                                                                                
     Page 6, line 19:                                                                                                           
          Delete "1,250"                                                                                                        
          Insert "1,000"                                                                                                        
                                                                                                                                
     Page 6, line 26:                                                                                                           
          Delete "1,250"                                                                                                        
          Insert "1,000"                                                                                                        
                                                                                                                                
     Page 21, line 22:                                                                                                          
          Delete "1,250"                                                                                                        
          Insert "1,000"                                                                                                        
                                                                                                                                
     Page 22, line 22:                                                                                                          
          Delete "1,250"                                                                                                        
          Insert "1,000"                                                                                                        
                                                                                                                                
     Page 23, line 27:                                                                                                          
          Delete "1,250"                                                                                                        
          Insert "1,000"                                                                                                        
                                                                                                                                
SENATOR BISHOP objected for discussion purposes.                                                                                
                                                                                                                                
1:58:41 PM                                                                                                                    
At-ease.                                                                                                                        
                                                                                                                                
1:59:07 PM                                                                                                                    
CHAIR REINBOLD  reconvened the  meeting. She  explained Amendment                                                               
4.   This  would   reduce  the   biennial   brewery  and   winery                                                               
manufacturer license  fees from  $1,250 to $1,000.  She explained                                                               
that some smaller  brewery and wineries expressed  concern that a                                                               
480 percent increase would be detrimental to their businesses.                                                                  
                                                                                                                                
SENATOR MICCICHE  pointed out that  fees have not  been increased                                                               
for over  40 years. He  said that he  has only had  one complaint                                                               
from  a  winery,  but  none from  breweries.  He  explained  that                                                               
enforcement has not done any  compliance checks in any facilities                                                               
in three years.  He expressed concern that this  would impact the                                                               
public safety gains in the bill.                                                                                                
                                                                                                                                
SENATOR BISHOP  asked whether  the license fees  go to  the board                                                               
for administrative costs  or to the general fund.  He offered his                                                               
belief that  the fiscal  note was a  little "light"  to implement                                                               
the potential regulations needed under the bill.                                                                                
                                                                                                                                
SENATOR MICCICHE answered  that the license fees go  to the board                                                               
to manage compliance of alcoholic beverage licensing.                                                                           
                                                                                                                                
2:01:54 PM                                                                                                                    
SENATOR  GRAY-JACKSON   asked  for  further   clarification  that                                                               
reducing the license fees would reduce public safety.                                                                           
                                                                                                                                
SENATOR MICCICHE  agreed. He explained  that the  additional $250                                                               
fee increase per licensee assists  with compliance checks. One of                                                               
the primary  reasons for the  bill was to  reinstitute compliance                                                               
checks  for  the  thousands  of  licensees  not  currently  being                                                               
checked. He offered his belief that  has a direct impact on minor                                                               
consuming. The executive director  prepares and submits an annual                                                               
budget   that   includes    the   funding   for   administration,                                                               
enforcement,  education,  training,   and  prevention  activities                                                               
under the title.  He said that the license fees  were designed to                                                               
fund those activities.                                                                                                          
                                                                                                                                
2:03:07 PM                                                                                                                    
SENATOR  BISHOP asked  for further  clarification on  the current                                                               
fees.                                                                                                                           
                                                                                                                                
2:03:29 PM                                                                                                                    
EDRA  MORLEDGE, Staff,  Senator Peter  Micciche, Juneau  answered                                                               
that she  was not  certain, but  she thought  that the  fees were                                                               
$800 biennially.                                                                                                                
                                                                                                                                
SENATOR BISHOP asked whether the  sponsor had vetted the increase                                                               
to the industry.                                                                                                                
                                                                                                                                
SENATOR  MICCICHE directed  attention  to letters  of support  in                                                               
members'  packets that  indicate that  the industry  supports the                                                               
current status  of SB 52,  including the increased  license fees.                                                               
The understand the  values of the bill, such that  it would clean                                                               
up the  industry and address  the small number of  operators that                                                               
give the industry a bad name.  He offered his belief that without                                                               
compliance checks the problems seemed to be increasing.                                                                         
                                                                                                                                
SENATOR BISHOP said  he does not like to  see supplemental budget                                                               
requests. He said he has  previously expressed his concerns about                                                               
the fiscal note.                                                                                                                
                                                                                                                                
2:04:42 PM                                                                                                                    
SENATOR COSTELLO  asked Ms. McConnell  to comment on  the current                                                               
compliance  staff  and  the total  number  of  compliance  checks                                                               
necessary for businesses that fall under the bill                                                                               
                                                                                                                                
2:05:03 PM                                                                                                                    
MS. MCCONNELL  explained that  compliance checks  were previously                                                               
funded through  a federal grant  from the Department  of Justice,                                                               
which ended in 2015. The program  was suspended at this time with                                                               
the  intent  to reexamine  and  continue  it. The  assignment  of                                                               
marijuana program  to the office  created upheaval. It  was tough                                                               
to focus on anything other  than getting the marijuana program up                                                               
and running.                                                                                                                    
                                                                                                                                
She indicated the intention to  continue to do compliance checks.                                                               
The  Alcohol &  Marijuana  Control Office  has eight  enforcement                                                               
officers  to cover  the entire  state. The  office would  like to                                                               
conduct  the compliance  checks to  protect the  underage persons                                                               
conducting   the    activity,   including    providing   workers'                                                               
compensation  for  any  injuries.  For  example,  if  enforcement                                                               
officers were  traveling with  staff and a  car accident  were to                                                               
occur.  She said  that the  agency is  trying to  work out  those                                                               
details before bringing the program back.                                                                                       
                                                                                                                                
MS.  MCCONNELL  highlighted that  the  program  is expensive  and                                                               
requires travel. She reported  that approximately 1,900 licensees                                                               
are in  place statewide.  She was  not certain  of the  number of                                                               
licenses  that  serve  alcoholic   beverages  on  premises.  AMCO                                                               
provides compliance  checks for  consumption on the  premises and                                                               
in  package   stores.  She  offered   to  provide   the  specific                                                               
information in writing.  In response to a  question, she verified                                                               
that the office has eight investigators.                                                                                        
                                                                                                                                
2:06:51 PM                                                                                                                    
SENATOR  GRAY-JACKSON asked  how much  funding the  $250 increase                                                               
provides annually.  She expressed  an interest  in knowing  if it                                                               
was equivalent to the salary for one or two investigators.                                                                      
                                                                                                                                
MS.  MCCONNELL   offered  to  provide  the   information  to  the                                                               
committee.                                                                                                                      
                                                                                                                                
SENATOR GRAY-JACKSON expressed an  interest in knowing the impact                                                               
to public  safety and  investigators providing  compliance checks                                                               
if  Amendment 4  passed and  the license  fees were  reduced from                                                               
$1,250 to $1,000.                                                                                                               
                                                                                                                                
MS. MCCONNELL responded that she  would have to review and assess                                                               
the fiscal note. She offered to report back to the committee.                                                                   
                                                                                                                                
2:09:15 PM                                                                                                                    
SENATOR  MICCICHE asked  to correct  the  licensing fee  amounts.                                                               
Under  SB 52,  license fees  for a  brewery and  distillery would                                                               
increase from $1,000  to $1,250, which is a  25 percent increase.                                                               
The  one   complaint  from   Mr.  Olson   related  to   a  winery                                                               
manufacturing license, which would  increase from $500 to $1,250,                                                               
for a 150 percent increase.                                                                                                     
                                                                                                                                
He  said that  he understood  the concerns,  that winery  license                                                               
fees could  be reduced to $1,000.  He pointed out that  Mr. Olson                                                               
suggested a change to the bond,  which was adopted. It meant that                                                               
quality operators  who pay their  taxes timely no longer  have to                                                               
have  the expense  of a  bond if  the licensee  pays their  taxes                                                               
timely for three years in a row.                                                                                                
                                                                                                                                
2:10:46 PM                                                                                                                    
CHAIR  REINBOLD  suggested  conflicting testimony  was  given  on                                                               
current fees.                                                                                                                   
                                                                                                                                
CHAIR  REINBOLD  asked  to  withdraw  Amendment  4  in  order  to                                                               
continue to work  with the sponsor. She expressed  an interest in                                                               
justifying  the  fees.  She expressed  concern  about  abuses  or                                                               
excess spending.                                                                                                                
                                                                                                                                
2:12:48 PM                                                                                                                    
SENATOR MICCICHE  clarified that  Ms. Morledge indicated  she was                                                               
not positive  about the  current fees. He  reiterated that  Am0 4                                                               
proposed  an increase  in biennial  license fees  from $1,000  to                                                               
$1,250. The  winery license fees  would increase to $1,250  for a                                                               
150  percent   increase.  He  reported   that  he   reviewed  the                                                               
legislative audits.  The only problem  that arose related  to the                                                               
application of a statute. He did  not find any abuses or excesses                                                               
in spending, he said.                                                                                                           
                                                                                                                                
CHAIR REINBOLD  clarified that  she did  not have  concerns about                                                               
AMCO and that she has  reviewed their audits. She raised concerns                                                               
about spending  by other boards  and commissions. She  would like                                                               
accountability  and a  measurable  outcome  that improves  public                                                               
safety.                                                                                                                         
                                                                                                                                
2:14:48 PM                                                                                                                    
SENATOR COSTELLO said she appreciated  her concerns. She said the                                                               
message from  the committee  is that the  fee increases  would be                                                               
used for investigators.                                                                                                         
                                                                                                                                
2:15:36 PM                                                                                                                    
SENATOR GRAY-JACKSON asked that  the information on fee increases                                                               
be provided in a timely manner.                                                                                                 
                                                                                                                                
2:16:12 PM                                                                                                                    
SENATOR BISHOP  asked whether the bond  was a cash bond  or is an                                                               
insurance binder for  a percentage of the bond.  He further asked                                                               
if it pertained  to a cash bone, whether AMCO  would lose revenue                                                               
or if the fee increase was a wash.                                                                                              
                                                                                                                                
2:17:02 PM                                                                                                                    
MS. MCCONNELL  answered that  the bond was  related to  the taxes                                                               
owed  to  the   Department  of  Revenue  and  is   paid  to  that                                                               
department.  It  is entirely  unrelated  to  Alcohol &  Marijuana                                                               
Control Office budget, she said.                                                                                                
                                                                                                                                
2:17:19 PM                                                                                                                    
CHAIR  REINBOLD reiterated  that Amendment  4 was  withdrawn. She                                                               
said that  she intended  to bring the  amendment before  the next                                                               
committee of referral, the Senate Judiciary Committee.                                                                          
                                                                                                                                
2:17:43 PM                                                                                                                    
CHAIR  REINBOLD  moved  to  adopt Amendment  5,  work  order  31-                                                               
LS0004\U.19, Bruce, 4/11/19:                                                                                                    
                                                                                                                                
                          AMENDMENT 5                                                                                       
                                                                                                                                
     Page 31, lines 13 - 17:                                                                                                    
          Delete all material.                                                                                                  
                                                                                                                                
     Reletter the following subsections accordingly.                                                                            
                                                                                                                                
     Page 31, line 23:                                                                                                          
          Delete "(c) - (e)"                                                                                                    
          Insert "(c) or (d)"                                                                                                   
                                                                                                                                
SENATOR COSTELLO objected for discussion purposes.                                                                              
                                                                                                                                
CHAIR REINBOLD  explained Amendment 5.  She said that  the holder                                                               
of a manufacturer license to offer  sampling of the product via a                                                               
manufacturer   sampling  endorsement   would  be   authorized  to                                                               
advertise.                                                                                                                      
                                                                                                                                
2:18:19 PM                                                                                                                    
SENATOR  COSTELLO asked  for further  clarification. She  offered                                                               
her belief that  AS 04.09.410 was a curious section  of the bill.                                                               
She  pointed  out that  the  holder  of a  manufacturer  sampling                                                               
endorsement  may  not  advertise  through  newsprint,  radio,  or                                                               
television,  but the  business may  notify existing  customers of                                                               
sampling  activities by  electronic means.  She asked  the reason                                                               
for the restriction.                                                                                                            
                                                                                                                                
SENATOR MICCICHE said he understood  Amendment 5 and supports it.                                                               
He deferred to Ms. Brawley.                                                                                                     
                                                                                                                                
2:19:11 PM                                                                                                                    
ANNA BRAWLEY, Title 4 Review Coordinator, Senior Associate,                                                                     
Agnew Beck Consulting, Anchorage,  related her understanding that                                                               
the  question   was  about   Amendment  5   removing  advertising                                                               
restrictions for sampling by manufacturers.                                                                                     
                                                                                                                                
CHAIR REINBOLD directed attention to page 31, lines 13-17.                                                                      
                                                                                                                                
MS. BRAWLEY answered that the  purpose of the policy proposal was                                                               
to ensure that  advertising for providing free  samples would not                                                               
turn into signage that promoted  "free alcohol" to encourage over                                                               
consumption for the purposes of  generating business. The current                                                               
language  in  the  bill would  restrict  public  advertising  for                                                               
sampling to address  this concern. However, it  is currently part                                                               
of the  business model to offer  tours and sampling, not  just in                                                               
Alaska but  in other places.  She said that she  held discussions                                                               
with Alaska  Berries who had objected  to this. The idea  that it                                                               
would be  a severe  problem is  less than  initially anticipated,                                                               
she said.                                                                                                                       
                                                                                                                                
SENATOR  COSTELLO said  that she  appreciated  the concerns  that                                                               
Recover  Alaska  has raised,  but  she  offered her  support  for                                                               
Amendment 5.                                                                                                                    
                                                                                                                                
SENATOR MICCICHE  said that he  supports Amendment 5.  He related                                                               
that he  has reached out  to Alaska Berries, his  constituent, to                                                               
try  to find  some compromises.  He offered  his belief  that the                                                               
amendment makes reasonable and productive changes.                                                                              
                                                                                                                                
2:21:37 PM                                                                                                                    
SENATOR COSTELLO removed her objection.                                                                                         
                                                                                                                                
There being no further objection, Amendment 5 was adopted.                                                                      
                                                                                                                                
2:21:56 PM                                                                                                                    
CHAIR  REINBOLD  moved  to  adopt Amendment  6,  work  order  31-                                                               
LS0004\U.20, Bruce, 4/11/19:                                                                                                    
                                                                                                                                
                          AMENDMENT 6                                                                                       
                                                                                                                                
     Page 22, line 11, following "than":                                                                                        
          Insert "5.167 gallons of the holder's beer or                                                                         
     sake."                                                                                                                     
                                                                                                                                
     Page 22, lines 12 - 13:                                                                                                    
          Delete all material.                                                                                                  
                                                                                                                                
     Page 23, line 14, following "than":                                                                                        
          Insert "5.167 gallons of the holder's wine, mead,                                                                     
     or cider."                                                                                                                 
                                                                                                                                
     Page 23, lines 15 - 19:                                                                                                    
          Delete all material.                                                                                                  
                                                                                                                                
     Page 42, line 25, following "than":                                                                                        
          Insert "5.167 gallons of the holder's beer or                                                                         
     sake;"                                                                                                                     
                                                                                                                                
     Page 42, lines 26 - 27:                                                                                                    
          Delete all material.                                                                                                  
                                                                                                                                
SENATOR COSTELLO objected for discussion purposes.                                                                              
                                                                                                                                
CHAIR  REINBOLD  explained  that  Amendment 6  was  a  conforming                                                               
amendment that  allows those with  a retail license to  sell 5.67                                                               
gallons of beer, wine, mead, cider or sake.                                                                                     
                                                                                                                                
2:22:37 PM                                                                                                                    
SENATOR MICCICHE  said that he  supports Amendment 6. He  said it                                                               
is allowed  by brewers and  should be allowed by  wineries, cider                                                               
makers, and  sake makers, as  well. It  puts everyone on  a level                                                               
playing field.                                                                                                                  
                                                                                                                                
CHAIR REINBOLD  pointed out  that it relates  to wine,  mead, and                                                               
cider.                                                                                                                          
                                                                                                                                
SENATOR BISHOP asked whether kombucha  falls under this provision                                                               
since some Oregon kombucha makers are making craft kombucha.                                                                    
                                                                                                                                
MS. MORLEDGE answered that this  bill does not regulate kombucha.                                                               
It only pertains to alcoholic beverages.                                                                                        
                                                                                                                                
2:24:05 PM                                                                                                                    
SENATOR BIRCH related that one  of his constituents uses a drive-                                                               
up grocery delivery service. He  questioned whether the groceries                                                               
could  include  wine  or  beer.   He  wondered  if  a  conceptual                                                               
amendment  was necessary.  It  would  read, "It  shall  not be  a                                                               
violation  of this  section for  the  holder of  a package  store                                                               
licensed to deliver alcoholic beverages  to a customer waiting in                                                               
package store parking  lot if the customer  has previously placed                                                               
an  order with  the package  store  licensee and  the payment  is                                                               
processed on site." He expressed  an interest in hearing from the                                                               
sponsor.                                                                                                                        
                                                                                                                                
SENATOR MICCICHE  answered that he  was uncertain. He  offered to                                                               
address this matter  outside the meeting in order  to consider if                                                               
it would create  any unintended consequences. At  first blush, it                                                               
sounded reasonable, but he would  like an opportunity to evaluate                                                               
the concept with the department.                                                                                                
                                                                                                                                
SENATOR BIRCH pointed  out that this service is a  fairly new one                                                               
offered by some stores. For example,  a consumer could drive to a                                                               
Walmart  parking lot  and text  the  store, and  the store  would                                                               
deliver  the   preordered  groceries  to  the   parking  lot.  He                                                               
reiterated  that  he  wondered  whether  these  deliveries  could                                                               
include wine  or beer. He agreed  to discuss this outside  of the                                                               
committee.                                                                                                                      
                                                                                                                                
SENATOR MICCICHE deferred to Ms. McConnell.                                                                                     
                                                                                                                                
MS. MCCONNELL  said she has no  comment. She said it  appeared to                                                               
be  a policy  decision. However,  she would  like to  consider it                                                               
more fully and communicate with the sponsor.                                                                                    
                                                                                                                                
CHAIR  REINBOLD offered  to  work  on this  issue  in the  Senate                                                               
Judiciary Committee,  the next  committee of  referral, if  it is                                                               
not resolved before the bill is reported from committee.                                                                        
                                                                                                                                
2:27:35 PM                                                                                                                    
SENATOR COSTELLO removed her objection.                                                                                         
                                                                                                                                
There being no further objection, Amendment 6 was adopted.                                                                      
                                                                                                                                
2:28:11 PM                                                                                                                    
CHAIR REINBOLD solicited  a motion to consider  Amendment 1, work                                                               
order 31-LS0004\U.18, which was set aside.                                                                                      
                                                                                                                                
2:28:24 PM                                                                                                                    
SENATOR BISHOP  moved to adopt  Amendment 1, which  was discussed                                                               
earlier in the meeting and moved to the bottom of the calendar.                                                                 
                                                                                                                                
SENATOR COSTELLO objected for discussion purposes.                                                                              
                                                                                                                                
MS. MCCONNELL said she appreciated  the committee delaying action                                                               
on Amendment  1 to  allow her  to review  it. She  raised several                                                               
considerations. First,  AS 04.11.510  (a) requires the  staff and                                                               
board  to bring  completed applications  to the  board within  90                                                               
days. She explained  that the Alcohol &  Marijuana Control Office                                                               
board  schedule is  based on  the 90-day  requirement. The  board                                                               
meets approximately five times per  year to ensure that completed                                                               
applications are considered timely.  She expressed concern that a                                                               
60-day  requirement would  mean that  the board  would meet  more                                                               
often  and  add  additional  expense  or  some  applications  for                                                               
transfers would go to the board and others would not.                                                                           
                                                                                                                                
MS. MCCONNELL  said it could  lead to local  government protests.                                                               
She  asked  for  further  clarification  on  how  that  would  be                                                               
addressed. Second,  it raises concern on  whether applicants have                                                               
met   their   obligations   under   unemployment   and   workers'                                                               
compensation  insurance.  The  Department of  Labor  periodically                                                               
reports when  licensees do not meet  these requirements. Further,                                                               
the  Workers' Compensation  Board has  issued fines  and outlined                                                               
issues that licensees need addressed.                                                                                           
                                                                                                                                
MS. MCCONNELL said third, that  the criminal background check was                                                               
addressed in subsection (d). However,  the board cannot currently                                                               
approve a transfer unless, per AS 04.11.360 (4):                                                                                
                                                                                                                                
       (4) the transferor has not paid all debts or taxes                                                                       
       arising from the conduct of the business licensed                                                                        
     under this title unless                                                                                                    
       (A) the transferor gives security for the payment                                                                        
     of the debts or taxes satisfactory to the creditor or                                                                      
     taxing authority;                                                                                                          
                                                                                                                                
She said  that a transfer  provides an opportunity  for creditors                                                               
to ensure  that payments are  received, so liens are  often filed                                                               
on licensees by distributors and suppliers for nonpayment.                                                                      
                                                                                                                                
MS. MCCONNELL reiterated that she  was unclear on how those three                                                               
issues would be addressed if Amendment 1 was adopted.                                                                           
                                                                                                                                
SENATOR  COSTELLO offered  her belief  that this  amendment would                                                               
not  affect  local  community protests.  She  recalled  from  Ms.                                                               
McConnell's previous  testimony that the  board was able  to hold                                                               
telephonic meetings and the agency  was working towards an online                                                               
application process.  She suggested these two  items dovetail and                                                               
satisfy the concerns.  Further, she recalled her  response to why                                                               
so many restaurants in her community  are on hold even though the                                                               
previous owner had the ability to serve alcoholic beverages.                                                                    
                                                                                                                                
SENATOR  COSTELLO asserted  that  this bill  reinforces what  the                                                               
AMCO  has  previously  testified   already  occurs.  However,  in                                                               
practice, it may  not transpire in the same way.  She offered her                                                               
belief  that  the  protections  in current  law  are  good  ones.                                                               
However,  the fact  that some  transfers are  being significantly                                                               
delayed was  a concern  to her. Amendment  1 attempts  to address                                                               
her concerns, she said.                                                                                                         
                                                                                                                                
2:33:38 PM                                                                                                                    
SENATOR  GRAY-JACKSON  remarked  that  she has  served  in  local                                                               
government observing  the number of protests  on liquor licenses.                                                               
She asked for further clarification  on whether Amendment 1 would                                                               
affect local government protests due to conflicting comments.                                                                   
                                                                                                                                
MS. MCCONNELL  said she  was unsure  how Senator  Costello viewed                                                               
Amendment  1  with  respect  to  protests.  She  highlighted  her                                                               
concern   was  for   licenses   automatically  transferred.   She                                                               
suggested that language similar to  subsection (e) could be added                                                               
to ensure  that if the  local body  objected timely, it  would be                                                               
addressed.                                                                                                                      
                                                                                                                                
SENATOR COSTELLO offered her belief  that all the tools currently                                                               
exist for AMCO. This would just  change the timeline from 90 days                                                               
to  60 days,  which essentially  requires  AMCO to  speed up  the                                                               
processing time. She was not  under the impression that Amendment                                                               
1  would  affect  any  of the  current  processes.  For  example,                                                               
Alcohol & Marijuana  Control Office would still  have the ability                                                               
to deny a license transfer.                                                                                                     
                                                                                                                                
SENATOR  MICCICHE said  that he  understands both  sides of  this                                                               
concern. He  offered his  support for  Amendment 1.  He suggested                                                               
that  if Amendment  1 was  adopted  today, the  bill sponsor  and                                                               
Senator  Costello   could  continue   to  evaluate   whether  any                                                               
additional stop  gaps were  necessary if money  is owed  or other                                                               
issues  arise   that  would   interrupt  the   automatic  license                                                               
transfer.                                                                                                                       
                                                                                                                                
2:36:37 PM                                                                                                                    
CHAIR REINBOLD  referred to  page 1  line 6  of Amendment  1. She                                                               
said  she thought  it  was important  to clarify  that  it was  a                                                               
"completed" application.                                                                                                        
                                                                                                                                
MS. MCCONNELL said  that the board's interpretation  is that this                                                               
refers to a  completed application. She explained  that the board                                                               
would not allow  a licensee to stonewall a  needed correction and                                                               
expect  that the  application was  approved because  60 days  had                                                               
passed.  She  said that  the  addition  of "completed"  would  be                                                               
positive  and provide  clarity, but  the interpretation  would be                                                               
the same.                                                                                                                       
                                                                                                                                
2:37:40 PM                                                                                                                    
CHAIR REINBOLD offered a Conceptual  Amendment to Amendment 1, on                                                               
line 6, before "application" to add "completed".                                                                                
                                                                                                                                
SENATOR COSTELLO said that the  Conceptual Amendment to Amendment                                                               
1 would add clarity and she had no objection.                                                                                   
                                                                                                                                
There  being  no further  objection,  Conceptual  Amendment 1  to                                                               
Amendment 1 was adopted.                                                                                                        
                                                                                                                                
2:38:19 PM                                                                                                                    
SENATOR BISHOP said he previously removed his objection.                                                                        
                                                                                                                                
2:38:33 PM                                                                                                                    
SENATOR  COSTELLO remarked  that  this bill  has previously  been                                                               
through the  process. Further, SB  52 has been referred  to three                                                               
committees.  She  offered to  work  with  Ms. McConnell  and  the                                                               
sponsor with respect  to how Amendment 1 will  affect the board's                                                               
ability   to    carry   out    the   important    public   safety                                                               
responsibilities.                                                                                                               
                                                                                                                                
SENATOR MICCICHE  acknowledged that as  a past mayor  he observed                                                               
some issues  with licensees,  who might owe  local taxes  or have                                                               
complaints lodged.  He suggested that the  transfer process often                                                               
provided an  opportunity to sort  through some of the  issues. He                                                               
offered  his belief  that Amendment  1 was  a good  amendment. He                                                               
suggested that this language would  force conversations to ensure                                                               
that  local government  make  certain that  people  who are  most                                                               
impacted  by  the licensees  have  a  voice  in the  process.  He                                                               
offered to continue to work on any issues.                                                                                      
                                                                                                                                
2:39:54 PM                                                                                                                    
SENATOR  BIRCH  thanked  the  committee   for  the  work  on  the                                                               
amendments.  He  also  thanked   Ms.  McConnell  for  her  timely                                                               
responses to  issues he raised  and the  sponsor for the  work on                                                               
the bill.                                                                                                                       
                                                                                                                                
2:40:35 PM                                                                                                                    
There being  no further objection,  Amendment 1, as  amended, was                                                               
adopted.                                                                                                                        
                                                                                                                                
[SB 52 was held in committee.]                                                                                                  
                                                                                                                                
2:40:52 PM                                                                                                                    
CHAIR REINBOLD  reviewed the  upcoming meeting  announcements and                                                               
pending amendments for SB 52.                                                                                                   
                                                                                                                                
2:45:03 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair Reinbold  adjourned the Senate Labor  and Commerce Standing                                                               
Committee meeting at 2:45 p.m.                                                                                                  

Document Name Date/Time Subjects
SB52 Amendments 4-11-19.pdf SL&C 4/11/2019 1:30:00 PM
SB 52
SB052-DHSS-PS-4-11-2019.pdf SL&C 4/11/2019 1:30:00 PM
SB 52