HB 213-GOLF COURSE ALCOHOLIC BEVERAGE LICENSES  3:34:57 PM CHAIR OLSON announced that the next order of business would be HOUSE BILL NO. 213, "An Act relating to golf course alcoholic beverage licenses." 3:35:53 PM REPRESENTATIVE JOHNSON made a motion to rescind the action to move the [CSHB 213(L&C)] from committee. There being no objection the action was rescinded. [HB 213, as amended, was now before the committee.] 3:36:08 PM KONRAD JACKSON, Staff, Representative Kurt Olson, Alaska State Legislature, explained that on February 10, 2014 the committee took up HB 213. During that meeting Conceptual Amendment 1 was offered to change from "and" to "or" on page 2, line 11. Conceptual Amendment 1 was adopted and the bill was moved from committee [as the CSHB 213 (L&C)]. The [Legislative Legal Counsel] legal drafter explained that this small change may have caused some unintended consequences, which would allow persons under the age of 16, unaccompanied by a person 21 or older, to enter a golf course restaurant or bar where liquor was being served. After conversations with each committee member and the bill sponsor, Representative Thompson, it was agreed this was not the intention of the amendment. The sponsor has developed alternate language to allow youth under the ages of 16 to play golf, unaccompanied by someone 21 years of age or older, on a golf course where a restaurant serving liquor is located, but not to enter a golf course restaurant or bar unaccompanied. Therefore, he recommended the committee rescind its action in adopting Conceptual Amendment 1. CHAIR OLSON [the committee treated it as though he had previously objected and he] removed his objection. 3:38:21 PM REPRESENTATIVE JOHNSON made a motion to rescind action on adopting Conceptual Amendment 1. There being no further objection, the motion to adopt Conceptual Amendment 1 was rescinded. [HB 213 was now before the committee.] REPRESENTATIVE JOHNSON made a motion to adopt the proposed committee substitute (CS) for HB 213, labeled 28-LS0868\0, [Strasbaugh, 2/20/14,] as the working document [Version O]. CHAIR OLSON objected for the purpose of discussion. 3:39:01 PM BRODIE ANDERSON, Staff, Representative Steve Thompson, Alaska State Legislature, on behalf of the prime sponsor, Representative Steve Thompson, explained the changes in Version O. He reiterated the importance of one word. He referred to page 1, lines 5-6, which adds language as follows, "from April  15 through November 15 of a calendar year." This language would essentially make the golf course liquor license a seasonal license, he said. MR. ANDERSON next referred to page 2, lines 8-15, AS 04.16.049 (a) which adds language, as follows: 4) the premises are licensed under AS 04.11.115 and the  person enters and remains on the licensed premises   (A) only for golfing; or  (B) only for dining, or for both golfing and  dining, if  (i) the person is at least 16 years of age; or  (ii) the person is under 16 years of age, is  accompanied by a person over 21 years of age, and the  parent or guardian of the underage person consents.  MR. ANDERSON explained that this language definitely clarifies the issue of an underage minor golfing versus the minor eating at the golf course restaurant. He explained that proposed AS 04.16.049 (a) (4) (A) would allow the minor to be on the golf course to play golf. He explained that proposed AS 04.16.049 (a)](4)(B) would allow for dining or for both golfing and dining if (i) the person is at least 16 years of age; or [ii] the person is under 16 years of age, is accompanied by a person over 21 years of age, and the parent or guardian of the underage person consents. He further explained that this language would allow an underage person to be on the golf course for the purpose of golfing, but if the youth desires to eat in a restaurant the language complies with standard rules that require an adult accompany the youth. 3:41:30 PM MR. ANDERSON returned to the change [on page 1, lines 5-6, which adds language as follows, "from April 15 through November 15 of  a calendar year."]. He explained that this language also will limit the golf course liquor license to a seasonal license. This language was developed after much discussion about golf courses obtaining full beverages on golf courses since year round licensure may allow golf courses to compete with other establishments [that adhere to license requirements for a full beverage license.] This language represents a compromise to allow golf courses to move forward and serve full beverages on the course but not unintentionally compete year round with other establishments serving alcoholic beverages. For example, the value of a full beverage license in Anchorage could be up to $200,000 and $70,000 in Fairbanks. The committee took a very brief at-ease. 3:42:43 PM CHAIR OLSON stated the committee also just received a letter that addresses some of the concerns of the Alaska Cabaret, Hotel, Restaurant, & Retailer's Association (CHARR). He was unaware that CHARR was not supportive of the bill, but he noted the Alcoholic Beverage Control Board (ABC Board) has weighed in and does not have any concerns. He asked whether the sponsor was aware of CHARR's issues with the bill. MR. ANDERSON answered that during the debate he became aware of some issues related on the perceived value to the golf course liquor license, which would also be competing with the full liquor license; however, he was under the impression that a compromise had been achieved with respect to seasonal and full beverage service. He had understood that if a golf course wanted full beverage service off-season the owner would go through the process to obtain a full liquor license. He further understood that CHARR held an advisory meeting last night to discuss the issue. CHAIR OLSON stated that to the best of his knowledge his office had not been contacted by CHARR. He reported that the ABC Board identified the issue which arose with the language change [in CSHB 213(L&C) that passed out of committee on 2/10/14] from "and" to "or." 3:45:31 PM REPRESENTATIVE HERRON asked whether this current point has previously been taken up by the ABC Board. 3:45:53 PM SHIRLEY COTE, Executive Director, Alcoholic Beverage Control Board, Department of Commerce, Community & Economic Development (DCCED), asked Representative Herron to repeat the question. REPRESENTATIVE HERRON asked whether the ABC Board has had a similar situation arise, such that a seasonal operation versus year round operation [had issues on the type of beverage license and competition.] MS. COTE stated that currently licensees apply for seasonal licenses for which the licensee would pay half of the biennial fee. She reported that currently four of the eight golf courses that have licenses are seasonal and the remaining four golf courses have year round licenses. 3:46:56 PM CHAIR OLSON offered his belief that the issue is significant enough to hold the bill over. [HB 213 was held over.]