SB 52-ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG  1:33:19 PM CHAIR HUGHES announced that the first order of business would be SENATE BILL NO. 52, "An Act relating to alcoholic beverages; relating to the regulation of manufacturers, wholesalers, and retailers of alcoholic beverages; relating to licenses, endorsements, and permits involving alcoholic beverages; relating to common carrier approval to transport or deliver alcoholic beverages; relating to the Alcoholic Beverage Control Board; relating to offenses involving alcoholic beverages; amending Rule 17(h), Alaska Rules of Minor Offense Procedure; and providing for an effective date." CHAIR HUGHES made opening remarks. 1:33:54 PM SENATOR MICCICHE said he looks forward to hearing from the public. 1:34:16 PM CHAIR HUGHES opened public testimony on SB 52. 1:34:32 PM BEVERLY SCHOONOVER, Acting Director, Alaska Advisory Board on Alcoholism and Drug Abuse, Alaska Mental Health Board, Department of Health and Social Services (DHSS), Juneau, stated that the agencies she oversees are statutorily charged with planning and coordinating behavioral health services funded by the state. The boards are in support of SB 52, which provides a much-needed update to the Title 4 provisions and includes prevention measures to reduce underage drinking. She said that the agencies have made progress to reduce underage drinking. According to the annual youth risk behavioral survey (YRBS) over the last 25 years there have been declines in the percentage of youth starting drinking before 13 years of age. However, the department knows that underage drinking, including binge drinking occurs in Alaska. In 2017, nearly 15 percent of the students surveyed in the YRBS reported binge drinking in the past 30 days. She related that is four or more drinks in a row for females and five or more drinks in a row for males. Underage drinking, especially binge drinking is harmful to adolescent brain development. The department does not want Alaska's teenagers engaging in other risky behaviors while under the influence of alcohol. The department believes the preventative measures outlined in SB 52 will reduce underage drinking in Alaska for the following reasons. SB 52 would hold adults who supply alcohol to youth accountable by maintaining current penalties for furnishing alcohol to a minor, especially if it causes the youth harm or is a repeat offense, both of which are felonies under the bill. This bill also provides much needed resources for enforcement of Title 4 by increasing license fees, many of which have not been increased in decades, which has continued to limit the ABC Board's ability to do its job. This includes ensuring that businesses do not sell or serve alcohol to minors. She thanked Senator Micciche for sponsoring this bill for his steadfast leadership to the large group of diverse contributors who have worked hard to find solutions through compromise and move these changes forward for the last seven years. 1:36:29 PM LEE ELLIS, President, Brewers Guild of Alaska, Anchorage, stated support for SB 52. He said that over the multi-year process of developing the compromises in this bill, the bill is fair. It is not considered a gift to the Brewers Guild of Alaska, but it is fair to every stakeholder in the process. He said that his group would like to honor that process by supporting this bill. He further wanted to support the efforts by Senator Micciche and others who have been involved in the process. He said that the bill will benefit the industry by cleaning up the regulations that affect it. He said brewery startups often must hire an attorney to sort through the regulatory process to open a business. Manufacturers have been a bright spot in the economy in the last few years in Alaska. Anything that would make it easier to assist entrepreneurs will benefit the industry. The bill will still maintain regulation on the tap room and the three-tier system that is critical for wholesalers, manufacturers, and retailers. This has been the best work by all these groups, which is the reason the guild supports it. 1:38:17 PM JAN HILL, Member, Title 4 Review Steering Committee, Haines, stated that she was a member of the Title 4 review steering committee and has been involved throughout the process. She has served as cochair of the local option subcommittee with Chris Simon, formerly of the Alaska Department of Education and Early Development. She emphasized that Title 4 very much needs to be modernized and SB 52 is a huge step forward. She related the subcommittee talked extensively about the impacts of alcohol on dry and damp communities, alcohol-related crimes, and the need to improve Title 4 in order to increase enforcement. While much work still needs to be done with local option laws, SB 52 makes some important changes. One of these is to give rural communities access to existing data about legal alcohol sales and deliveries, so law enforcement can understand the flow of alcohol into rural Alaska. Another change is regulating Internet sales to ensure that a person in a dry community is not using this loophole to get around the monthly order limits in existing laws. She stated her support for SB 52. She urged members to pass the bill this year. 1:39:58 PM LOGAN DANIELS, Healthy Voices Healthy Choices, Anchorage, said that a friend's brother was killed by a 16-year-old drunk driver in the Lower 48. He said that anything that can be done to modernize the regulations and limit youth access to alcohol will be a step in the right direction. 1:41:25 PM CHAIR HUGHES, after first determining no one wished to testify, closed public testimony on SB 52. [SB 52 was held in committee.]