01/24/2025 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB15 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 15 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
January 24, 2025
1:34 p.m.
MEMBERS PRESENT
Senator Jesse Bjorkman, Chair
Senator Kelly Merrick, Vice Chair
Senator Elvi Gray-Jackson
Senator Forrest Dunbar
Senator Robert Yundt
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 15
"An Act relating to the sale of alcohol; relating to the posting
of warning signs for alcoholic beverages; and providing for an
effective date."
- HEARD AND HELD--
PREVIOUS COMMITTEE ACTION
BILL: SB 15
SHORT TITLE: ALCOHOL: SALE, WARNING SIGNS
SPONSOR(s): SENATOR(s) MERRICK
01/10/25 (S) PREFILE RELEASED 1/10/25
01/22/25 (S) READ THE FIRST TIME - REFERRALS
01/22/25 (S) L&C
01/24/25 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
KERRY CROCKER, Staff
Senator Kelly Merrick
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented Sectional Analysis for SB 15.
CODIE COSTELLO, President
Alaska Center for the Performing Arts
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 15.
SARAH OATS HARLOW, President
Alaska Cabarets, Hotels, Restaurants, Retailers (CHARR)
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 15.
TIFFANY HALL, CEO
Recover Alaska
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to SB 15.
ACTION NARRATIVE
1:34:34 PM
CHAIR BJORKMAN called the Senate Labor and Commerce Standing
Committee meeting to order at 1:34 p.m. Present at the call to
order were Senators Merrick, Dunbar, Gray-Jackson, Yundt and
Chair Bjorkman.
SB 15-ALCOHOL: SALE, WARNING SIGNS
1:37:06 PM
CHAIR BJORKMAN announced the consideration of SENATE BILL NO. 15
"An Act relating to the sale of alcohol; relating to the posting
of warning signs for alcoholic beverages; and providing for an
effective date."
1:37:42 PM
SENATOR KELLY MERRICK speaking as the sponsor of SB 15, provided
the following statement:
[Original punctuation provided.]
Senate Bill 15, version A
Sponsor Statement
"An Act relating to the sale of alcohol; relating to
the posting of warning signs for alcoholic beverages;
and providing for an effective date."
Senate Bill 15 amends existing statutes surrounding
the sale and consumption of alcoholic beverages in our
state. The bill not only streamlines our current laws
but aims to promote responsible alcohol service,
enhance employment opportunities for our youth, and
ensure that individuals under 21 are adequately
protected. Through the changes proposed in this bill,
we clarify and improve the operational guidelines for
restaurants, theaters, and seasonal establishments
holding alcohol licenses.
Key provisions include:
• Allowing a person aged 18- 20 to be employed
and alcohol in establishments such as
restaurants, breweries, wineries, distilleries,
hotels, motels, large resorts
• Ensuring establishments that choose to employ
those under 21 years of age adequately supervise
those employees to prevent underage consumption.
• Expanding the ability of individuals aged 16
and older to enter restaurants and other licensed
premises for dining, with protections to ensure
minors are not inappropriately exposed to
alcohol.
• Adjusting the service hours for alcohol in
theater establishments, recognizing the evolving
nature of entertainment venues and providing
greater flexibility while maintaining public
safety.
• Updating warning signs in alcohol-serving
establishments to emphasize risks.
These common-sense reforms balance public safety with
desires of the business community, reflecting our
commitment to ensuring that alcohol consumption is
managed responsibly in our communities while also
providing protections, and increased job
opportunities, for young Alaskans.
1:39:56 PM
KERRY CROCKER, Staff, Senator Kelly Merrick, Alaska State
Legislature, Juneau, Alaska, presented the following Sectional
Analysis for SB 15:
[Original punctuation provided.]
Senate Bill 15, version A
Sectional Analysis
"An Act relating to the sale of alcohol; relating to
the posting of warning signs for alcoholic beverages;
and providing for an effective date."
Section 1. Amends AS 04.09.210(c) - Restaurant or
eating place license Incorporates supervision of minor
employees as a criteria of consideration when the
board issues or renews a license.
Section 2. Amends AS 04.09.210(d) - Restaurant or
eating place license Authorizes the license holder to
employ those aged 16 to 21 years but requires adequate
supervision of employees who are 16 or 17 years of
age, so they do not obtain alcoholic beverages.
Section 3. Amends AS 04.09.250(c) Theater license
Expands the time period in which a theater license
holder may sell or serve alcohol. Removes intermission
language.
Section 4. Amends AS 04.09.360(c) Seasonal
restaurant or eating place tourism license Repeat of
Section 1 for the seasonal tourism license,
incorporating supervision of minor employees as a
criteria to be considered by the board during issuance
or renewal of a license.
Section 5. Amends AS 04.09.360(f) Seasonal
restaurant or eating place tourism license Repeat of
Section 2 for the seasonal tourism license,
authorizing 1621-year-old employees, provided there
is adequate supervision.
Section 6. Amends AS 04.09.450(d) Restaurant
endorsement Repeat of Section 1 for the restaurant
endorsement, incorporating supervision of minor
employees as a criteria to be considered by the board
during issuance or renewal of a license.
Section 7. Amends AS 04.09.450(e) Restaurant
endorsement Repeat of Section 2 for the restaurant
endorsement, authorizing 1621-year-old employees,
provided there is adequate supervision.
Section 8. Amends AS 04.16.049(d) Access of persons
under the age of 21 to licensed premises Allows those
who are aged 18, 19, or 20 employed by a licensee to
serve, sell, deliver, and dispense alcoholic
beverages. Adds language to ensure that adult
entertainment establishments are excluded.
Section 9. Amends AS 04.16.049(h) Access of underage
persons to licensed premises Allows those aged 16 and
over to be present unattended on the premises of a
theater license holder or a large resort endorsement;
those under 16 must be accompanied by a person who is
at least 21 years of age, with the consent of their
parent or legal guardian.
Section 10. Amends AS 04.16.049 Access of persons
under the age of 21 to licensed premises Defines adult
entertainment. These establishments may not take
advantage of expanded employee allowances in Section
8.
Section 11. Amends AS 04.16.052(a) Furnishing of
alcoholic beverages to underage persons by licensees
Allows licensees or an agent or employee of the
license to allow another person to sell, barter, or
give an alcoholic beverage to a person under the age
of 21 years only under the provisions in AS
04.16.049(d).
Section 12. Amends 04.21.065(b) Posting of warning
signs Replaces the signs currently on display at
alcohol vendors with one that reads "WARNING: Alcohol
use during pregnancy can cause birth defects. Alcohol
use can cause cancer, including breast and colon
cancers."
Section 13. Repeals AS 04.09.250(d) Theatre license
This is the portion of the theater license statute
regarding where alcohol can be sold, served, and
consumed within the theatre. With updates in Section
9, this line is no longer necessary.
Section 14. Effective date of July 1, 2025
1:43:31 PM
SENATOR DUNBAR stated a similar bill was heard in the previous
legislature. He asked how SB 15 differs from last years bill
and what similarities remain.
1:43:51 PM
MR. CROCKER answered there are zero changes that have been made
to SB 15 from House Bill 189.
1:44:18 PM
CHAIR BJORKMAN announced invited testimony on SB 15.
1:44:48 PM
CODIE COSTELLO, President, Alaska Center for the Performing
Arts, Anchorage, Alaska, testified in support of SB 15. She
stated she is the Chief Operating Officer of the Alaska Center
for the Performing Arts and General Manager of Broadway Alaska
She offered the following statement:
[Original punctuation provided]
Thank you for the opportunity to discuss the benefits
of SB 15 today. Alaska Center for the Performing Arts
(ACPA) has been in operation for over 35 years. We
partner with presenters and producers from Alaska and
around the world to provide world-class Arts
experiences to our community, including 8 resident
companies.
We are in our second season of Broadway Alaska a
multi-year partnership with The Nederlander
Organization. Last year we presented 4 shows,
generating over $30 million in economic impact for
downtown Anchorage and the state of Alaska. That is
from our Broadway program alone, not to mention all of
the other events hosted at the PAC! We understand the
importance of our role as an economic engine for
Downtown, Anchorage and Alaska. We've seen patrons
from all over the country and cities across Alaska for
our new Broadway program, and we are just getting
started! Next week, we will welcome BEETLEJUICE.
SB 15 allows us to continue this work, expanding our
local business operations and revenue while enhancing
the theatre experience for our patrons.
Under our current alcohol license, patrons may only
consume alcohol in our upper-level lobbies and within
limited timeframes, and there is no alcohol allowed in
theatres and the workforce is limited.
SB 15 provides an updated framework for the rules of
our license. ACPA requests this licensing change to
increase our service flexibility to accommodate our
clients and patrons and ensure their experience at the
theatre is relaxed and responsible, and our venue and
services reflect the type of experience our patrons
seek and that we can support and promote. Currently,
if a patron purchases a drink during an intermission,
they need to procure, drink and be back in their seats
within minutes. This system is rushed, unnecessary and
leads to a harried atmosphere and product waste.
We have a robust operations plan for the PAC with
well-trained event, security and concessionaire staff.
We are poised to scale up and adjust our operations to
ensure continued successful, safe and responsible
operations with the passage of SB 15.
SB 15 increases ACPA's economic impact for downtown
Anchorage; drives increased operating revenue to help
us reinvest in the facility and personnel; keeps our
theatre license in line with the national standards
and increases the quality of our patrons' experience.
It is a win for local businesses by expanding
workforce and for the Arts industry and the lively
downtown experience we all help to curate in
Anchorage.
1:48:28 PM
SARAH OATS HARLOW, President, Alaska Cabarets, Hotels,
Restaurants, Retailers (CHARR), Anchorage, Alaska, testified in
support of SB 15. She offered the following testimony:
[Original punctuation provided]
I have served as President & CEO of the Alaska
Cabaret, Hotel, Restaurant, and Retailers Association
(commonly known as Alaska CHARR) since 2018. Alaska
CHARR has over 700 members and represents over 2000
hospitality establishments that employ over 36,000
workers across Alaska communities.
Alaska's hospitality industry continues to face
significant ongoing challenges to business operations,
the greatest of which being ongoing and increasing
labor shortages.
Currently, Alaska is one of only three states (along
with Utah and Nevada) that requires a person to be 21
years of age or older to serve alcohol. Employers
struggle to promote or retain quality employees who
are 18-20 years of age because they are prohibited
from serving alcohol or supervising other employees
who serve or sell alcohol. Alaska is not competitive
in this space, and our industry is experiencing an
outmigration of young workers.
When I was in my late teens and early twenties, I
attended college while serving and bartending in the
Pacific Northwest. During summer breaks, I stayed in
the Pacific Northwest rather than returning home to
Alaska because I could make significantly more money
as a server or manager positions that I was
prohibited by law from working in in my home state. In
multiple years, I earned six figures by serving and
bartending as a young adult outside of Alaska; if I
had returned to Alaska, I would have been limited
under current statute to positions that paid 25-30%
what I was able to make outside. Many young people are
making the same choice in today's labor market which
is having a significant impact on Alaska hospitality
businesses.
Senate Bill 15 will help hundreds of Alaskan-owned
establishments around the state that collectively
represent Alaska's largest private employer and second
largest industry.
As the voice of Alaska's hospitality industry, I
respectfully request that you support thousands of
workers and businesses around the state by voting in
support of Senate Bill 15.
1:51:07 PM
CHAIR BJORKMAN [concluded invited testimony on SB 15.]
1:51:30 PM
CHAIR BJORKMAN opened public testimony on SB 15.
1:52:11 PM
TIFFANY HALL, CEO, Recover Alaska, Anchorage, Alaska, testified
in opposition to SB 15. She said SB 15 poses a significant
threat to the safety, health, and future of Alaska's youth. The
risks outweigh the potential benefits. She added that exposing
minors to alcohol serving environments undermines public health
objectives and could normalize underage drinking. She stated
there is no evidence suggesting that lowering server age would
alleviate labor shortages. She said instead of risking youth
safety, the hospitality industry should focus on higher wages,
better working conditions and automation to attract workers. She
stated that posting cancer risk warning signs is the only
portion of SB 15 she favors.
1:55:55 PM
CHAIR BJORKMAN left public testimony open on SB 15.
1:56:01 PM
CHAIR BJORKMAN [held SB 15 in committee.]
1:57:20 PM
There being no further business to come before the committee,
Chair Bjorkman adjourned the Senate Labor and Commerce Standing
Committee meeting at 1:57 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB15 ver. A.pdf |
SL&C 1/24/2025 1:30:00 PM |
SB 15 |
| SB15 Sponsor Statement Ver. A.pdf |
SL&C 1/24/2025 1:30:00 PM |
SB 15 |
| SB15 Sectional Analysis Ver.A.pdf |
SL&C 1/24/2025 1:30:00 PM |
SB 15 |
| SB15 Supporting Documents-State by State Comparison.pdf |
SL&C 1/24/2025 1:30:00 PM |
SB 15 |
| SB15 Fiscal Note-DCCED-AMCO 01.23.25.pdf |
SL&C 1/24/2025 1:30:00 PM |
SB 15 |