05/11/2024 09:00 AM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB251 | |
| HB189 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 251 | TELECONFERENCED | |
| += | HB 189 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
May 11, 2024
12:19 a.m.
MEMBERS PRESENT
Senator Jesse Bjorkman, Chair
Senator Elvi Gray-Jackson
Senator Forrest Dunbar
MEMBERS ABSENT
Senator Click Bishop, Vice Chair
Senator Kelly Merrick
COMMITTEE CALENDAR
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 251(L&C) AM
"An Act exempting certain foods and drinks prepared in an
uninspected kitchen from state labeling, licensing, packaging,
permitting, and inspection requirements; and permitting a person
to acquire meat from a producer by way of an ownership share in
an animal if certain conditions are met."
- MOVED SCS CSHB 251(L&C) OUT OF COMMITTEE
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 189(L&C) AM
"An Act relating to the sale of alcohol; relating to the posting
of warning signs for alcoholic beverages; and providing for an
effective date."
- MOVED SCS CSHB 189(L&C) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 251
SHORT TITLE: EXEMPTIONS FOR HOMEMADE FOODS
SPONSOR(s): REPRESENTATIVE(s) RAUSCHER
01/16/24 (H) PREFILE RELEASED 1/12/24
01/16/24 (H) READ THE FIRST TIME - REFERRALS
01/16/24 (H) L&C, RES
02/02/24 (H) L&C AT 3:15 PM BARNES 124
02/02/24 (H) <Bill Hearing Rescheduled to 02/05/24>
02/05/24 (H) L&C AT 3:15 PM BARNES 124
02/05/24 (H) Heard & Held
02/05/24 (H) MINUTE(L&C)
02/14/24 (H) L&C AT 3:15 PM BARNES 124
02/14/24 (H) Scheduled but Not Heard
02/21/24 (H) L&C AT 3:15 PM BARNES 124
02/21/24 (H) -- MEETING CANCELED --
03/15/24 (H) L&C AT 3:15 PM BARNES 124
03/15/24 (H) -- MEETING CANCELED --
03/27/24 (H) L&C AT 3:15 PM BARNES 124
03/27/24 (H) Moved CSHB 251(L&C) Out of Committee
03/27/24 (H) MINUTE(L&C)
03/28/24 (H) L&C RPT CS(L&C) NEW TITLE 2DP 5NR
03/28/24 (H) DP: RUFFRIDGE, SUMNER
03/28/24 (H) NR: CARRICK, FIELDS, SADDLER, PRAX,
WRIGHT
04/08/24 (H) RES AT 1:00 PM BARNES 124
04/08/24 (H) Heard & Held
04/08/24 (H) MINUTE(RES)
04/15/24 (H) RES AT 1:00 PM BARNES 124
04/15/24 (H) Heard & Held
04/15/24 (H) MINUTE(RES)
04/17/24 (H) RES AT 1:00 PM BARNES 124
04/17/24 (H) Moved CSHB 251(L&C) Out of Committee
04/17/24 (H) MINUTE(RES)
04/18/24 (H) RES RPT CS(L&C) NEW TITLE 9DP
04/18/24 (H) DP: MEARS, ARMSTRONG, DIBERT, MCCABE,
SADDLER, WRIGHT, BAKER, RAUSCHER, MCKAY
05/06/24 (H) L&C CS ADOPTED Y37 N1 A2
05/06/24 (H) TRANSMITTED TO (S)
05/06/24 (H) VERSION: CSHB 251(L&C) AM
05/07/24 (S) READ THE FIRST TIME - REFERRALS
05/07/24 (S) L&C
05/09/24 (S) L&C AT 5:15 PM BELTZ 105 (TSBldg)
05/09/24 (S) Heard & Held
05/09/24 (S) MINUTE(L&C)
05/10/24 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
05/10/24 (S) Heard & Held
05/10/24 (S) MINUTE(L&C)
05/11/24 (S) L&C AT 9:00 AM BELTZ 105 (TSBldg)
BILL: HB 189
SHORT TITLE: SALE OF ALCOHOL
SPONSOR(s): LABOR & COMMERCE
05/03/23 (H) READ THE FIRST TIME - REFERRALS
05/03/23 (H) L&C
03/06/24 (H) L&C AT 3:15 PM BARNES 124
03/06/24 (H) <Bill Hearing Rescheduled to 03/08/24>
03/08/24 (H) L&C AT 3:15 PM BARNES 124
03/08/24 (H) Scheduled but Not Heard
03/11/24 (H) L&C AT 3:15 PM BARNES 124
03/11/24 (H) Heard & Held
03/11/24 (H) MINUTE(L&C)
03/22/24 (H) L&C AT 3:15 PM BARNES 124
03/22/24 (H) Moved CSHB 189(L&C) Out of Committee
03/22/24 (H) MINUTE(L&C)
03/25/24 (H) L&C RPT CS(L&C) 4DP 1NR
03/25/24 (H) DP: CARRICK, PRAX, RUFFRIDGE, SUMNER
03/25/24 (H) NR: SADDLER
03/27/24 (H) FIN REFERRAL ADDED AFTER L&C
04/29/24 (H) FIN REFERRAL REMOVED
05/06/24 (H) TRANSMITTED TO (S)
05/06/24 (H) VERSION: CSHB 189(L&C) AM
05/07/24 (S) READ THE FIRST TIME - REFERRALS
05/07/24 (S) L&C, FIN
05/08/24 (S) FIN REFERRAL REMOVED
05/08/24 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
05/08/24 (S) Heard & Held
05/08/24 (S) MINUTE(L&C)
05/09/24 (S) L&C AT 5:15 PM BELTZ 105 (TSBldg)
05/09/24 (S) Moved SCS CSHB 189(L&C) Out of
Committee
05/09/24 (S) MINUTE(L&C)
05/10/24 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
05/10/24 (S) Heard & Held
05/10/24 (S) MINUTE(L&C)
05/11/24 (S) L&C AT 9:00 AM BELTZ 105 (TSBldg)
WITNESS REGISTER
CRYSTAL KOENEMAN, Legislative Liaison
Office of the Commissioner
Department of Environmental Conservation
Juneau, Alaska
POSITION STATEMENT: Answered questions on changes to HB 251
version U.A to R.
RENA MILLER, Special Assistant
Office of the Commissioner
Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Provided a summary of changes for HB 251
version U.A to R and answered questions.
KONRAD JACKSON, Staff
Senator Jesse Bjorkman
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced Amendment 3 (U.5) to HB 189.
JOAN WILSON, Director
Alcohol and Marijuana Control Office (AMCO)
Anchorage, Alaska
POSITION STATEMENT: Provided an overview of Amendment 3 (U.5)
for HB 189.
ACTION NARRATIVE
12:19:52 PM
CHAIR JESSE BJORKMAN called the Senate Labor and Commerce
Standing Committee meeting to order at 12:19 a.m. Present at the
call to order were Senators Gray-Jackson, Dunbar, and Chair
Bjorkman.
HB 251-EXEMPTIONS FOR HOMEMADE FOODS
[Contains discussion of SB 211]
12:20:41 PM
CHAIR BJORKMAN announced the consideration of CS FOR HOUSE BILL
NO. 251(L&C) am "An Act exempting certain foods and drinks
prepared in an uninspected kitchen from state labeling,
licensing, packaging, permitting, and inspection requirements;
and permitting a person to acquire meat from a producer by way
of an ownership share in an animal if certain conditions are
met."
CHAIR BJORKMAN noted that a Senate committee substitute for HB
251 which was the result of merging HB 251 with SB 211, also
known as the crop act, was before the committee.
12:21:06 PM
CHAIR BJORKMAN solicited a motion.
12:21:08 PM
SENATOR GRAY-JACKSON moved to adopt the Senate committee
substitute (SCS) for CSHB 251, work order 33-LS0888\R, as the
working document.
12:21:17 PM
CHAIR BJORKMAN objected for purposes of explanation. He invited
Ms. Miller and Ms. Koeneman to explain the changes to HB 251.
12:21:48 PM
CRYSTAL KOENEMAN, Legislative Liaison, Office of the
Commissioner, Department of Environmental Conservation, Juneau,
Alaska, introduced herself.
12:21:58 PM
RENA MILLER, Special Assistant, Office of the Commissioner,
Department of Natural Resources, Anchorage, Alaska, introduced
herself and presented a conceptual overview of changes to HB
251. She referred to SB 211, the Crop Act, and noted that the
Senate Labor and Commerce Standing Committee reported SB 211
[April 29, 2024].
• Section one of SB 211 [which was included in HB 251]
reduced the quorum requirement of the seven-member Board of
Agriculture and Conservation from five to four. She said
this would allow the board to conduct their business more
effectively. She noted that a key function of the Board of
Agriculture and Conservation business is making loans from
the agricultural revolving loan fund.
• Section two of HB 251 would expand the types of things for
which the Board of Agriculture [and Conservation] can
approve loans. Under HB 251 the board could approve loans
to individual residents, partnerships or corporations. She
said specific activities added to HB 251 [for loan
eligibility] were both transportation and manufacturing. HB
251 would also allow the board to use the [revolving loan]
fund to refinance debt incurred through other borrowing
tools.
• Section three [of HB 251] would increase the maximum amount
of loans that any one individual can have at any one point
in time, from $1 million, which was set several decades
ago, to $3 million. HB 251 would adjust the cap for
inflation to be proactive about future needs.
12:23:34 PM
• Section four would remove some statutory caps limiting
short-term loans for certain activities, and instead, would
ask the Board of Agriculture and Conservation to set those
loans in regulation.
• Section five would increase the maximum farm product
processing loan from $250,000 to $500,000. She noted this
limit was set decades ago and that the intent [of raising
the cap] was to keep up with the modern environment.
• Section six would remove the statutory cap for loans
related to clearing land and asks the board of agriculture
to set those in regulation.
• Section eight would allow the Board of Agriculture and
Conservation and DNR to adopt regulations for those
provisions.
• Sections 9, 10 and 11 provide effective dates for the new
provisions.
12:24:26 PM
SENATOR GRAY-JACKSON asked for confirmation that the summary of
changes Ms. Miller presented was the same content as the summary
of changes presented [for SB 211].
12:24:38 PM
MS. MILLER said there was one minor modification. She referred
to the committee substitute for HB 251, page 2. She explained
that, when a previous committee added in-state manufacturing and
costs of shipping [to allowable items for loans] they were added
in an order that would not have allowed shipping in relation to
manufacturing. She said the solution was to move manufacturing
[to a position] above transportation in the list of things that
can be loaned for so that shipping would apply to manufacturing
and other provisions already [approved] in statute.
12:25:31 PM
SENATOR GRAY-JACKSON asked for confirmation that [the change to
allow loan consideration for shipping] was the only deviation
from the summary of changes presented [for SB 211].
12:25:39 PM
MS. MILLER confirmed that [the change to allow loan
consideration for shipping] was the only modification.
12:25:50 PM
CHAIR BJORKMAN asked for an explanation of how SB 211
complemented and was incorporated into HB 251.
12:26:04 PM
MS. KOENEMAN answered that HB 251 provided for the sale of
homemade food for personal consumption, either directly to a
buyer or retail location through a third-party seller, as well
as the sale of items from a farmers' market or a producer's home
and from certain retail locations as well as online orders. She
explained the components that were added [to HB 251] from SB 211
were:
• reducing the quorum requirements for the purpose of
facilitating board business.
• including approving loan applications directly related to
production.
• recommending land designations for agricultural purposes.
• expanding the loan categories to include food manufacturing
and shipping that may be used for third party sales, which
ties into the homemade food producers.
• allowing for loans to be used to cover animal and feed
production and processing, which, she said is related to
the direct care and maintenance of animals for herd share
purposes or for equipment to produce and then sell or ship
homemade foods.
MS. KOENEMAN noted that the provisions from SB 211 that were
included in HB 251 would give additional opportunities for home
producers, as well as the animal share and herd sharing members
to have access to these items. She also noted that none of the
language was changed in HB 251 related to homemade products. She
said there was an effective date of July, 1, 2024, added to
section [10]. She also noted that there was no change to DEC's
fiscal note because of the added language.
12:28:19 PM
CHAIR BJORKMAN removed his objection; found no further objection
and SCS CSHB 251 was adopted as the working document.
12:28:34 PM
At ease
12:29:46 PM
CHAIR BJORKMAN reconvened the meeting and asked for an
explanation of the fiscal notes for HB 251.
12:30:13 PM
MS. KOENEMAN said there was a zero fiscal note from the
Department of Environmental Conservation, OMB Component Number
3202, dated January 26, 2024. She said Department of
Environmental Conservation (DEC) did not anticipate additional
workload or adjustments to their day-to-day operations as a
result of HB 251.
12:30:46 PM
MS. MILLER noted the fiscal note for HB 251 from the Department
of Natural Resources, OMB component number 455, dated May 10,
2024. She said Department of Natural Resources (DNR) anticipated
the need to write regulations for some of the provisions of SB
211 incorporated into HB 251. However, she said DNR believed
existing staff would be sufficient to cover any additional
demand for loans. She noted that the expanded eligibility [for
loans] may drive demand in a significant way as DNR hoped it
would. She said, [in that case] DNR would come back and ask for
additional resources in the future.
12:31:38 PM
CHAIR BJORKMAN solicited the will of the committee.
12:31:42 PM
SENATOR GRAY-JACKSON moved to report the SCS for CSHB 251, work
order 33-LS0888\R, from committee with individual
recommendations and attached fiscal note(s).
12:31:57 PM
CHAIR BJORKMAN objected for purposes of discussion.
12:32:00 PM
CHAIR BJORKMAN expressed strong support for the agricultural
revolving loan fund and emphasized its role in providing loans
to small farmers. He said he believed that HB 251 would further
encourage food production and support small farmers in the state
and commended the work to develop the bill.
12:33:08 PM
CHAIR BJORKMAN removed his objection; found no further objection
and SCS CSHB 251(L&C) was reported from the Senate Labor and
Commerce Standing Committee.
12:33:23 PM
At ease
HB 189-SALE OF ALCOHOL
12:34:59 PM
CHAIR BJORKMAN reconvened the meeting and announced the
consideration of CS FOR HOUSE BILL NO. 189(L&C) am "An Act
relating to the sale of alcohol; relating to the posting of
warning signs for alcoholic beverages; and providing for an
effective date."
[On May 10, 2024, the committee rescinded its action in
reporting SCS CSHB 189 (L&C) out of committee, which brought
working document SCS CSHB 189, work order 33-LS0697\U, as
amended, before the committee.]
CHAIR BJORKMAN noted that the committee needed to address
language in HB 189 concerning the permissible presence of minors
in establishments possessing a large resort endorsement.
12:35:31 PM
CHAIR BJORKMAN solicited a motion.
12:35:35 PM
SENATOR GRAY-JACKSON moved to adopt Amendment 3 (U.5) for HB
189.
33-LS0697\U.5
C. Radford
5/11/24
AMENDMENT 3
OFFERED IN THE SENATE BY SENATOR BJORKMAN
TO: SCS CSHB 189(L&C), Draft Version "U"
Page 4, line 25, through page 5, line 12:
Delete all material and insert:
"* Sec. 9. AS 04.16.049(h) is amended to read:
(h) Notwithstanding any other provision in this
section, a person under 21 years of age may be present
(1) on the licensed premises of a
(A) common carrier dispensary, destination
resort, or outdoor recreation lodge for the purpose of
travel, travel lodging, or outdoor recreation
activities provided by the licensee if the person is
(i) [(1)] at least 16 years of age; or
(ii) [(2)] under 16 years of age and a
parent or legal guardian of the underaged person
consents;
(B) theater if the person is
(i) at least 16 years of age; or
(ii) under 16 years of age, is accompanied
by a person who is at least 21 years of age, and a
parent or legal guardian of the underaged person
consents;
(2) in the areas of a licensed premises
covered by a large resort endorsement, but excluding
the areas of the premises originally covered by the
licensee's beverage dispensary or beverage dispensary
tourism license where alcohol is being served, for the
purpose of travel, travel lodging, or outdoor
recreation activities provided by the large resort if
the person is
(A) at least 16 years of age; or
(B) under 16 years of age and a parent or
legal guardian of the underaged person consents."
12:35:40 PM
CHAIR BJORKMAN objected for purposes of explanation.
12:35:53 PM
KONRAD JACKSON, Staff, Senator Jesse Bjorkman, Alaska State
Legislature, Juneau, Alaska, introduced Amendment 3 (U.5). He
said Amendment 3 (U.5) sought to deal with an oversight in the
drafting of the rewrite of AS 04 regarding establishments who
hold a large resort endorsement. He said Amendment 3 (U.5)
started on SCS CSHB 189, version U, page 4, line 25 through page
5, line 12 and deleted all of section 9. He said a new section 9
that's slightly rewritten was inserted and the crux of the
change to that section is found on line 18 of the amendment,
following number 2. He read the following added language: "in
the areas of a licensed premises covered by a large resort
endorsement, but excluding the areas of the premises originally
covered by the licensees' beverage dispensary or beverage
dispensary tourism license where alcohol is being served, for
the purpose of travel, travel lodging, or outdoor recreation
activities provided by the large resort, if the person is". He
explained that this language would allow for children to
traverse the hallways, the rooms, and the other similar common
areas of a large resort. He noted that Ms. Wilson of the Alcohol
and Marijuana Control Office (AMCO) was available to answer
questions.
12:37:56 PM
CHAIR BJORKMAN asked Ms. Wilson to comment on Amendment 3 (U.5).
12:38:32 PM 12:38:05
JOAN WILSON, Director, Alcohol and Marijuana Control Office
(AMCO), Anchorage, Alaska, provided further explanation of
Amendment 3 (U.5) for HB 189. She noted that an endorsement is
defined in AS 04.09.400 and does one of two things. It expands
the boundaries of a licensed premises, or it expands the
authorized activities of a licensed premises. She noted that the
applicant for an endorsement must demonstrate that the holder of
the license has the authority over and will exercise control
over conduct in all areas of a licensed premises, including
premises newly licensed by the endorsement. She emphasized that
the Alaska Alcoholic Beverage Control (ABC) board takes very
seriously expansions of licensed premises and will look to
things like making sure licensees like hotel Alyeska have
security plans and additional employees in place to make sure
children in common areas are not accessing alcohol that might
be, for example, left in a hallway. She said the other key thing
about Amendment 3 (U.5) is that it required that if a child was
going to be in a common area, they're there for the purpose of
travel, travel lodging or an outdoor recreation entity. She
acknowledged that one would not find a kid in a bar for any of
those purposes, but Amendment 3 (U.5) makes very clear that, as
long as the child is there running down the hallway or has their
skis on their back and is trying to get to the tram, it's
absolutely fine [and would be allowed]. She said the licensee
themselves would ensure that those children don't accidentally
or purposefully, on the child's part, access alcohol. She
expressed confidence that Amendment 3 (U.5) cured the defect [in
AS 04], which was difficult (or impossible) to enforce.
12:40:20 PM
CHAIR BJORKMAN removed his objection; found no further objection
and announced that Amendment 3 (U.5) was adopted.
12:40:36 PM
CHAIR BJORKMAN solicited the will of the committee.
12:40:40 PM
SENATOR GRAY-JACKSON moved to report Senate committee substitute
(SCS) for CSHB 189, work order 33-LS0697\U, from committee with
individual recommendations and attached fiscal note(s).
12:40:54 PM
CHAIR BJORKMAN found no objection and SCS CSHB 189(L&C) was
reported from the Senate Labor and Commerce Standing Committee.
12:41:29 PM
There being no further business to come before the committee,
Chair Bjorkman adjourned the Senate Labor and Commerce Standing
Committee meeting at 12:41 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB251 Draft Proposed CS ver R.pdf |
SL&C 5/11/2024 9:00:00 AM |
HB 251 |
| HB251 Memo on Draft CS ver R 24-271boo.pdf |
SL&C 5/11/2024 9:00:00 AM |
HB 251 |
| HB251 Fiscal Note DNR-AGR 05.11.24.pdf |
SL&C 5/11/2024 9:00:00 AM |
HB 251 |
| HB189 Draft Proposed Amendment U.5.pdf |
SL&C 5/11/2024 9:00:00 AM |
HB 189 |