HB 240 - BREWERY & BREWPUB LICENSES 3:50:40 PM CHAIR McGUIRE announced that the final order of business would be HOUSE BILL NO. 240, "An Act relating to brewery and brew pub licensing." [Before the committee was CSHB 240(L&C).] 3:50:48 PM CRAIG JOHNSON, Staff to Representative Lesil McGuire, Alaska State Legislature, presented HB 240 on behalf of the sponsor, the House Judiciary Standing Committee. He informed the committee that the Brewers Guild of Alaska represents six breweries and five brewpubs that operate within the state. The brewery owners and the brewpub owners have united and developed a compromise via CSHB 240(L&C) regarding the number of barrels and gallons that a brewpub can produce and the number of free samples that a brewery can produce. This legislation primarily impacts Anchorage and Fairbanks. Basically, HB 240 levels the playing field between breweries and brewpubs and with those breweries and brewpubs outside of the state. CHAIR McGUIRE informed the committee that she has gotten involved with this issue because she believes it's an emerging area of Alaska's economy. REPRESENTATIVE KOTT noted that he is in receipt of a letter from the Anchorage Cabaret, Hotel, Restaurant, & Retailers Association (CHARR) recommending a change to HB 240 such that all of those with beverage dispensary licenses would be allowed to provide small samples of beer and wine for promotional purposes. He asked if the aforementioned has been agreed upon. 3:55:59 PM CHUCK EDWARDS, Chair, Government Affairs, Anchorage Cabaret, Hotel, Restaurant, & Retailers Association (CHARR), relayed that he spoke with the brewers and the distributors who would like the opportunity to provide samples and maintain a level playing field. Mr. Edwards commented, "Some of this stuff kind of makes me feel like we're getting into the tavern business here." CHAIR McGUIRE, upon determining no one else wished to testify, closed public testimony on HB 240. 3:57:09 PM REPRESENTATIVE KOTT made a motion to adopt Amendment 1, which would insert the following language [original punctuation provided]: Notwithstanding (a) and (b) of this section, a beverage dispensary licenses or licensee's agent or employee, or a holder of a general wholesale, wholesale malt beverage and wine licenses by non- resident brewer or the agent or employees of these licenses may provide, without charge, any customer a small sample of beer or wine for promotional purposes. REPRESENTATIVE GRUENBERG made a motion that Amendment 1 be amended such that the first reference to "licenses" be changed to "licensee". There being no objection, Amendment 1 was amended. CHAIR McGUIRE asked whether there were any objections to Amendment 1, as amended. There being none, Amendment 1, as amended, was adopted. 3:58:46 PM REPRESENTATIVE KOTT moved to report CSHB 240(L&C), as amended, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 240(JUD) was reported from the House Judiciary Standing Committee.