02/19/2019 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| Presentation: Innovation in Alaska | |
| SB16 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 16 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
FEBRUARY 19, 2019
1:32 p.m.
MEMBERS PRESENT
Senator Lora Reinbold, Chair
Senator Mia Costello, Vice Chair
Senator Click Bishop
Senator Chris Birch
Senator Elvi Gray-Jackson
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
PRESENTATION: Innovation in Alaska
- HEARD
SENATE BILL NO. 16
"An Act relating to certain alcoholic beverage licenses and
permits; and relating to the bond requirement for certain
alcoholic beverage license holders."
- MOVED CSSB 16 (L&C) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 16
SHORT TITLE: ALCOHOL LIC:FAIRS,THEATRES,CONCERTS;BONDS
SPONSOR(s): SENATOR(s) MICCICHE
01/16/19 (S) PREFILE RELEASED 1/11/19
01/16/19 (S) READ THE FIRST TIME - REFERRALS
01/16/19 (S) L&C, FIN
02/05/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/05/19 (S) Heard & Held
02/05/19 (S) MINUTE(L&C)
02/14/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/14/19 (S) Scheduled but Not Heard
02/19/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
JOEL CUTCHER-GERSHENFELD, Ph.D.; Professor
The Heller School for Social Policy and Management
Brandis University
Boston, Massachusetts
POSITION STATEMENT: Participated in a presentation on Innovation
in Alaska.
ASTA SIGURJONSDOTTIR, Manager
Iceland Tourism Cluster
Reykjavik, Iceland
POSITION STATEMENT: Participated in a presentation on Innovation
in Alaska.
NATASHA MCCLANAHAN, Staff
Senator Lora Reinbold
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified on the changes from the original
bill, Version A to the proposed committee substitute (CS) for SB
16, Version U.
SENATOR PETER MICCICHE
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified as sponsor of SB 16.
EDRA MORLEDGE, Staff
Senator Peter Micciche
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented a sectional analysis for SB 16.
STEPHEN RICE, President
Tanana Valley State Fair Association (TVSFA)
Board of Directors, Fairbanks, Alaska
POSITION STATEMENT: Testified in support of SB 16.
SHERI MUSGRAVE, Beverage Manager
Alaska State Fair
Palmer, Alaska
POSITION STATEMENT: Testified in support of SB 16.
ROBERT WELLS, Board Member
Skeetawk Ski Resort
Palmer, Alaska
POSITION STATEMENT: Testified in support of SB 16.
PAUL A. SHADURA II, representing himself
Kenai, Alaska
POSITION STATEMENT: Testified in support of SB 16.
JEROME HERTEL, General Manager
Alaska State Fair
Palmer, Alaska
POSITION STATEMENT: Testified in support of SB 16.
STU GRAHAM, representing himself
Wasilla, Alaska
POSITION STATEMENT: Testified in support of SB 16.
ALEX KOPLIN, representing himself
Homer, Alaska
POSITION STATEMENT: Testified in support of SB 16.
ACTION NARRATIVE
1:32:10 PM
CHAIR LORA REINBOLD called the Senate Labor and Commerce
Standing Committee meeting to order at 1:30 p.m. Present at the
call to order were Senators Bishop, Birch, Gray-Jackson and
Chair Reinbold. Senator Costello arrived as the meeting was in
progress.
^PRESENTATION: Innovation in Alaska
PRESENTATION: Innovation in Alaska
1:33:12 PM
CHAIR REINBOLD announced that the first order of business would
be a Presentation: Innovation in Alaska by Joel Cutcher-
Gershenfeld and Asta Kristin Sigurjonscdottir.
1:34:29 PM
SENATOR COSTELLO joined the committee meeting.
1:35:47 PM
JOEL CUTCHER-GERSHENFELD, Ph.D.; Professor, The Heller School
for Social Policy and Management, Brandis University, Boston,
Massachusetts, presenter, Innovation in Alaska, introduced
himself.
1:36:08 PM
ASTA SIGURJONSDOTTIR, Manager, Iceland Tourism Cluster,
Reykjavik, Iceland, began a presentation on Innovation in
Alaska, noting that the Iceland Tourism Cluster began in 2015.
She plans on attending the summit tomorrow to discuss the rapid
growth in Iceland's tourism in the last ten years. She said she
would share the "good, the bad, and the ugly" at the summit. She
said it is important to learn from each other and address the
issues and discuss what has worked for Iceland. Between 2010-
2019, growth of tourism has increased from 500,000 visitors to
2.5 million.
She said in 2008, Iceland experienced a financial crisis and
during that time its currency was devalued by half. In 2010,
tourism companies were enthusiastic because people traveled to
Iceland since films such as Game of Thrones were being filmed in
Iceland. People also became aware of Iceland because the
volcanic eruption [of Eyjafjallajökull] disrupted air traffic.
The Icelandic government collaborated with tourism to explain
that Iceland was safe.
1:42:21 PM
MS. SIGURJONSDOTTIR stated that in 2017, Iceland started a
"Responsible Tourism" project, consisting of 350 companies who
worked together to promote responsible tourism in Iceland. This
demonstrated Iceland's focus on ecologically sound tourism.
Iceland would like tourism to grow for the next 100 years, not
just for the next five or 10 years. The companies signed the
pledge for responsible tourism by promising to protect nature,
the security of their guests, to take care of their employees,
and to operate in local communities in the best possible way.
1:44:02 PM
MS. SIGURJONSDOTTIR turned to how Iceland manages its tourism
marketing. The government and companies work together and share
marketing budget costs of $2.5 million. She highlighted five
objectives Iceland uses for it marketing. The first goal is to
increase an awareness of Iceland as a year-round destination to
ensure use of its infrastructure. Second, to increase commerce
from tourism to create more value. Third, to expand year-round
tourism and travel throughout the country. Fourth, to figure out
how to encourage more responsible travel behavior from tourists.
The final goal was to encourage residents to have positive
attitudes towards tourists, she said. She said she will discuss
Iceland's efforts to develop its tourism and ways it works with
government, municipalities and its universities at the
conference.
1:46:20 PM
SENATOR BIRCH asked how Icelandic Air access has helped
contribute to tourism and economic growth.
MS. SIGURJONSDOTTIR said airfares and the hub between U.S. and
Europe is a huge factor. In 2010, Iceland had three airlines
landing in Reykjavik, but it now has 27 airlines traveling from
101 destinations in the world. She said 10 million people land
in Reykjavik and about 2.5 million travel in Iceland. Tourism is
substantial, about eight times Iceland's population of 350,000,
she said. The airlines' marketing has had a big impact.
1:48:32 PM
SENATOR BIRCH said Alaska would like to replicate Iceland's
success. He asked for the relationship between Denmark and
Iceland.
MS. SIGURJONSDOTTIR said Iceland celebrated its 150th year of
independence from Denmark in 2018. She remarked that Iceland is
totally independent from Denmark.
1:49:21 PM
SENATOR BISHOP said he spent eight days in Iceland. He said he
really enjoyed it. The first phone call he made when he returned
home was to the tourism office with questions on how Alaska
could replicate Iceland's success in tourism.
1:49:50 PM
SENATOR GRAY-JACKSON asked for further clarification that
Iceland's total population is 350,000.
MS. SIGURJONSDOTTIR answered yes.
1:50:16 PM
DR. CUTCHER-GERSHENFELD began by relating that he has spent some
time working with the Fair Work Commission in Australia. He
learned that people who present formally in Australia first
honor the original owners of the land. Today he would like to
begin and honor the past, present, and future elders of the
Tlingit, the Haida, and the Tsimshian. He said his remarks would
cover production rather than the service side of innovation. In
1965, Gordon Moore wrote an article that considered the number
of resistors that could be placed on computer chips. Mr. Moore
determined that the capability was doubling every 18 months. He
speculated that it could continue that type of growth for
another 10 years. He went on to identify all the things that
computers might do during this time. Of course, Mr. Moore was
wrong, because this growth has continued for more than fifty
years. Mr. Moore's observations are known as Moore's law, which
states that the number of transistors in a dense integrated
circuit doubles about every two years. In looking back to 1965,
people would likely wish for different things, because we have
learned about weaponized social media and digitized divides.
Technology grew at an accelerated rate, but society did not lean
in on the challenges this growth posed until relatively
recently. The first two digital revolutions were in
communication and computation, but a new digital revolution lies
in fabrication.
1:52:46 PM
DR. CUTCHER-GERSHENFELD said that 15-20 years ago, computer
ability to control machine tools was just beginning. Computers
went from being one mainframe device to the billions of personal
computers and smart phones that we have today. Digital
fabrication is currently at the point mainframe computers were
when these computers filled a room and cost $100,000. For the
same funds today a fab-lab, a rapid-prototyping center that can
make almost anything with wood, plastic, metal, and other
materials could be built. In 2002, the first fab lab was built
in Boston. Since then these labs have been doubling every 18
months, exactly according to Moore's law. Currently, 1,600 fab-
labs exist, including the Cook Inlet Tribal Council fab lab in
the Anchorage area. Several more fab labs exist on the North
Slope, and the University of Alaska plans to put fab labs in
community colleges and campuses.
DR. CUTCHER-GERSHENFELD said the key idea he would like to raise
is that current technology could manufacture most consumer
goods, including furniture and musical instruments. At the
Innovation Summit, he will challenge the group with the concept
that if these technologies were readily available throughout
Alaska, it would be possible to cut dependence on global supply
chains for a number of products. Alaska would still be globally
connected to the network of fab labs and makerspaces that share
designs and material science capabilities worldwide. However,
Alaska has the chance before the technology becomes ubiquitous
to think about health and safety, governance, and digital
literacy related to fabrication. Further, the legislature can
think about all of the social and societal issues related to the
technology so society can co-evolve. Otherwise, 10 or 20 years
from now, Alaska might wish it had taken some steps earlier on.
He acknowledged that Alaska has a deep tradition of self-
sufficiency, so it could leverage its traditions, such as
traditions of barter and exchange or the sense of community, to
shape technologies in ways that are uniquely Alaskan. He
envisioned every neighborhood could have a rapid prototyping
center to design and build products instead of having to ship
their products to Alaska.
1:56:01 PM
DR. CUTCHER-GERSHENFELD said that underneath this is a fairly
fundamental rethinking of our economic system. He said that
Blair Evans took a 20-acre rundown part of Detroit and built a
large central lab and a series of satellite labs. People use
this area to grow hydroponic food and make furniture to meet
their needs. His concept was one of thirds, such that one third
of the time people would work to earn salaries to provide for
necessary goods, one third of the time people would have access
to self-sufficient production facilities, and one third of the
time people should follow their own passions. This could build
local productive capability across the state and pair it with
the dignity and meaning that comes from people making things for
their own use.
1:57:40 PM
DR. GERSHENFELD said that the technology is moving and growing
at an accelerated rate. His hypothesis is that it is some of the
most challenged rural and urban settings it may grow the fastest
and leapfrog. He hoped to engage with the committee so the
legislature can think about how it wants to shape how these
technologies will unfold so it can create the kind of future for
Alaska that it envisions.
1:58:30 PM
SENATOR COSTELLO said she took her son to the Cook Inlet Tribal
Council fab-lab, as his school team intended to use it for a
project, and it is phenomenal. She said that the Lego team ended
up using a different space Makerspace. At the fab lab said the
4-7th graders were in the process of using resonant frequency to
dislodge pipes to try to solve a problem with the human water
cycle. Through that process, she became aware of the fab lab and
the role that the Massachusetts Institute of Technology has had.
She offered her belief that the agreement was volunteering an
hour would allow students an hour at the lab. Her older son
received a 3-D printer, one that he could put together himself.
She said she sees an opportunity to merge their interest in
coding, fabrication, and Lego league and challenges. She said
once these students get going, it is impossible to hold them
back. She said she was unsure of the next step. She said his
vision seemed forward thinking. She recalled from her son's
experience, that the necessity to create something caused them
to learn by networking with others the necessary knowledge to
solve problems. She said the fab lab highlighted amazing
opportunities. She acknowledged the remoteness of the state
requires it to strive for innovation to problem solve.
2:02:49 PM
DR. CUTCHER-GERSHENFELD commented that ten years ago educators
in the City of Pittsburg were concerned that kids were not
learning enough. The educators held a pancake breakfast to
discuss project-based learning. These educators held 17
breakfasts with input from 2,000 educators formed "remake
learning." He reported that the area has over 100 fab labs and
makerspaces [collaborative workspaces inside a school, library
or separate public/private facility for making, learning,
exploring and sharing that use high-tech and no-tech tools].
These labs are in K-12 schools, community colleges, and
universities. He said that Pittsburg is now a world robotics
center and the human capital is coming through design thinking
in their learning. That process has been transforming the whole
economy in Pittsburg and it is one that could be possible in
Alaska since it taps into energy and enthusiasm.
He said that 10 years ago the Lemelson Award, which is a
prestigious innovation award, was given. He served on a
committee that explored what the winners of the Lemelson Award
needed to learn to be great innovators. The awardees said that
it had nothing to do with the filed of study for their college
degrees. Instead, if physics or chemistry was needed in order
for them to problem solve, the awardees learned it. He said he
discovered that learning around innovation was problem driven,
which is a very powerful model, he said.
DR. CUTCHER-GERSHENFELD related his understanding that Alaska
has been debating whether it should prepare people for college
or for the trades. In a sense, innovation indicates that both
models are right, he said. Some of digital fabrication does
involve material science and chemistry, but it also involves
working with one's hands. He pointed out [the Saint Francis of
Assisi quote, "He who works with his hands is a laborer. He who
works with his hands and his head is a craftsman. He who works
with his hands and his head and his heart is an artist."] also
known as head, hands, and heart. People who are retired tool and
die makers have as much to offer to the community fab lab as an
expert in the sciences.
2:05:42 PM
At-ease.
SB 16-ALCOHOL LIC:FAIRS,THEATRES,CONCERTS;BONDS
2:08:43 PM
CHAIR REINBOLD reconvened the meeting and announced that the
final order of business would be SENATE BILL NO. 16, "An Act
relating to certain alcoholic beverage licenses and permits; and
relating to the bond requirement for certain alcoholic beverage
license holders."
SENATOR COSTELLO made a motion to adopt the proposed committee
substitute for SB 16, labeled 31-LS0283\U, Bruce, 2/18/19 as the
working document.
SENATOR BISHOP objected for the purpose of discussion.
2:09:46 PM
NATASHA MCCLANAHAN, Staff, Senator Lora Reinbold, Alaska State
Legislature, Juneau, on behalf of the committee, explained the
changes from the original bill, Version A to the proposed
committee substitute (CS) for SB 16, Version U.
She said that Version U clarifies that a performing arts theatre
license can only be transferred to another person. It would
place additional parameters on beer and wine service in a
performing arts service. The service must be restricted to
specified areas, including portions of the audience viewing
area. It can only be served if the event is expected to have a
crowd that is predominately comprised of those that are over 21
years of age. It clarifies that skiing and snowboarding are
included in the definition of recreational site. It provides for
an immediate effective date along with other technical and
conforming changes.
2:11:11 PM
SENATOR PETER MICCICHE, Alaska State Legislature, Juneau,
Alaska, Testified as sponsor of SB 16. offered his belief that
the technical issues were resolved in the process. It will help
the Alcoholic Beverage Control Board in applying the statutes
and regulating alcohol. He said that his priority with SB 16 was
to address issues at the Alaska State Fair and to ensure that
the fair will be able to serve alcoholic beverages as it has for
the past 37 years. He said this bill presents an opportunity to
address several other issues, including alcohol consumption at
performing arts centers and ski areas.
2:12:57 PM
EDRA MORLEDGE, Staff, Senator Peter Micciche, Alaska State
Legislature, Juneau, said that the committee substitute has two
new sections, but she would briefly review all sections of the
bill:
Section 1: Amends AS 04.11.080 Types of Licenses and
Permits to add 'performing arts theater license,'
'fair license,' and 'concert permit.' (Page 1
beginning on Line 5)
Section 2: Adds a new section (AS 04.11.205)
Performing arts theater license. This section defines
this type of license, the biennial fee for the
license, and the circumstances for issuance and
compliance. (Page 2, beginning on Line 19)
Section 3: Amends AS 04.11.210(a) to use the word
"activities" rather than "events" as being allowed
under a recreational site license. (Page 3, lines 19-
22)
Section 4: Amends AS 04.11.210(c) to list sporting
activities such as skiing and snowboarding activities
are allowable under a recreational site license. (Page
3, lines 23-27)
Section 5: Adds a new section (AS 04.11.215) Fair
license. This section defines this type of license,
the biennial fee for the license, and the
circumstances for issuance and compliance. (Page 3,
beginning on line 28)
Section 6: Adds a new section (AS 04.11.235(a-c))
Concert permit. This section allows the holder of a
recreational site license to obtain a concert permit,
disallows transfer or renewal, and sets the fee at
$50. (Page 4, lines 9-17)
Section 7: Amends AS 04.11.330(d) to allow a
performing arts theater license renewal,
notwithstanding other requirements, if the license was
exercised at least once during each of the previous
two calendar years. (Page 4, lines 18-22)
2:14:32 PM
MS. MORLEDGE continued to review the sectional analysis for
Version U:
Section 8: Amends AS 04.11.400(a) to specify that the
board may prohibit a new license or relocation of an
existing license in accordance with population limits.
(Page 4, beginning on line 23)
Section 9: Establishes under AS 04.11.400 (o) that
only one fair license may be issued per borough. (Page
5, lines 24-26)
Section 10: Adds the new licenses/permit to the list
of those required post notice on the designated
premise. (Page 5, beginning on line 27)
Sections 11-13: Amends AS 43.60.040 Administration and
Enforcement of Tax, to add subsection (i). This
section provides an incentive for filing timely
monthly tax returns and paying taxes on time over the
most recent three years. Specifically, it removes the
$25,000 surety bond requirement if all other
requirements of compliance are met. (Page 6, beginning
on line 21, through page 7, line 21)
Section 14: Immediate effective date (Page 7, line 22)
2:15:47 PM
SENATOR BIRCH thanked Senator Micciche for including skiing and
snowboarding in the definition of "recreational site." He has
worked with the Alcoholic Beverage Control Board the past year.
He said it was a bit of a tangle, but this should help clear it
up.
2:16:33 PM
CHAIR REINBOLD opened public testimony on SB 16.
2:16:46 PM
STEPHEN RICE, President, Tanana Valley State Fair Association
(TVSFA), Board of Directors, Fairbanks, spoke in support of SB
16. The TVSFA welcomes any action that the legislature takes to
continue to allow fairs, theaters, and other recreational sites
to improve their services to communities and enhance the quality
of life for Alaskans. He asked the committee to ensure that the
provisions of SB 16 are available to all communities, regardless
of location and population. He also urged members not to
restrict lawful business practices. The TVSFA provides alcohol
at its events via a vendor with a caterer's license. The board
plans on continuing to use a caterer but would like to have
other options.
2:20:18 PM
SHERI MUSGRAVE, Beverage Manager, Alaska State Fair, Palmer,
spoke in support of SB 16. She thanked the sponsor and committee
for their work. She said that the Alaska State Fair would like
to avoid misinterpretation of the fair's license category by the
current and future Alcohol & Marijuana Control Office
administration.
2:21:09 PM
ROBERT WELLS, Board Member, Skeetawk, Palmer, spoke in support
of SB 16. said that Skeetaw is a non-profit ski area in the
Matanuska-Susitna Valley. The name "Skeetawk" is an Athabascan
name meaning, "Where we all slide down." The executive director,
Annie O'Connell, asked to go on record in support of Version U,
that clarify the definition of recreational sites includes ski
and snowboarding areas.
2:22:18 PM
PAUL A. SHADURA II, representing himself, Kenai, spoke in
support of SB 16. He said that he appreciated Senator Micciche's
efforts to sponsor the bill, which addresses recreational site
licensees. The Alaska State Fair is a family event that attracts
Alaskans from throughout the state in all social categories. He
also offered his support for the efforts of Alcoholic Beverage
Control Board to maintain compliance. He offered his belief that
this bill will enhance the entertainment and pleasure of those
attending special events. The state should not hinder functions
that represent an important part of our Alaskan way of life, he
said.
2:23:35 PM
JEROME HERTEL, General Manager, Alaska State Fair, Palmer,
Alaska, spoke in support of SB 16. This bill will more clearly
define the business model of the Alaska State Fair and bring an
end to the misinterpretation of the recreational site licenses
that the fair has been experiencing.
2:24:41 PM
STU GRAHAM, representing himself, Wasilla, spoke in support of
SB 16. He said that he also serves as a member of the City of
Wasilla City Council and is First Vice-President, Alaska
Municipal League and a board member of the Valley Performing
Arts. However, he is speaking on behalf of himself today. He
offered his support for SB 16 to clarify the statutes, so the
Alaska State Fair and other fairs can have a reasonable business
model. This bill does not release them from the oversight of the
ABC Board, so the board could take action if problems arise with
the liquor license.
2:26:10 PM
ALEX KOPLIN, representing himself, Homer, spoke in support of SB
16. He suggested the license fees and fares should be reviewed
and adjusted to raise additional revenue in the adjusted.
2:27:30 PM
CHAIR REINBOLD commented that the board hopes to consider
license fees in another bill before the committee.
2:27:37 PM
CHAIR REINBOLD, after first determining no one wished to
testify, closed public testimony on SB 16.
2:27:55 PM
SENATOR BISHOP removed his objection.
2:28:18 PM
SENATOR COSTELLO moved to report the proposed Committee
Substitute for SB 16, labeled 31-LS0283\U, Bruce, 2/18/19,
Version U, from committee with individual recommendations and
attached fiscal note(s). There being no objection, the CSSB
16(L&C) was reported from the Senate Labor and Commerce Standing
Committee.
2:28:49 PM
CHAIR REINBOLD reviewed upcoming committee announcements.
2:29:03 PM
There being no further business to come before the committee,
Chair Reinbold adjourned the Senate Labor and Commerce Standing
Committee meeting at 2:29 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| CSSB 16(L&C).pdf |
SL&C 2/19/2019 1:30:00 PM |
SB 16 |
| CSSB 16(L&C) Summary of Changes Ver. A to U.pdf |
SL&C 2/19/2019 1:30:00 PM |
SB 16 |
| 02.19.2019 SB 16 Support.pdf |
SL&C 2/19/2019 1:30:00 PM |
SB 16 |