HB 15-LIQUOR LICENSES: OUTDOOR REC. LODGE/BARS  CHAIR BUNDE announced HB 15 to be up for consideration. REPRESENTATIVE KEVIN MEYER, sponsor of HB 15, said the purpose of this bill is to create an alcoholic beverage license for outdoor recreation lodges. Currently, lodge owners who want to serve alcohol try to get a dispensary license costing about $2,500. A guided group on a boat would need a package license, which is another $1,500. All totaled, it would cost $4,000 to serve a drink with a meal and allow alcohol on the boat. These types of licenses are based on population and a lodge might not be able to afford to get one even if it is available. It is a very burdensome situation for many small lodges. Some lodges currently circumvent this by telling clients to bring their own alcohol, sell it to them illegally, or provide it and charge for it as part of the room rate, which is illegal. 1:48:17 PM REPRESENTATIVE MEYER said this creates problems for wholesale people who provide alcohol to rural areas. In fact, a wholesaler brought this issue to his attention. Without licenses for selling alcohol to remote lodges there is a lack of input from the local community. Also, if licensing is required, TAMS training is provided. He said the definition of an outdoor recreation lodge means, "A business that provide over-night accommodations, meals and is primarily involved in offering opportunities for persons to engage in outdoor recreation activities." He noted that the key to this license is approval from the Alcohol Beverage Control Board (ABC), which provides greater oversight and training. He explained that currently lodges can only serve alcohol to guests of off-duty staff and over-nighting guests; licenses are non-transferable. The licenses would cost $1,250 every two years, which would indicate a positive fiscal note - as the state doesn't get anything currently. The ABC board is part of the Division of Public Safety, which would make state troopers and fish and game officers available for enforcement. 1:51:26 PM REPRESENTATIVE MEYER noted that part 2 is an amendment offered by Representative Rokeberg that would allow the transfer of licenses in place prior to 1985 to family members who are inheriting a business as long as it stays at the premises. This was in reference to The Double Muskie Inn in Girdwood, Alaska. Cabaret, Hotel, Restaurant and Retailers Association (CHARR), ABC and lodges that they spoke to support this bill. CHAIR BUNDE asked if everybody who works at the lodge would have a TAMS card. REPRESENTATIVE MEYER deferred the answer to that question to Doug Griffin. CHAIR BUNDE said he would hold the question for him and asked what would prevent mom and pop gas stations that serve snow mobilers up at Cantwell from putting up a cabin out back and saying they are providing overnight recreation saying they serve alcohol. REPRESENTATIVE MEYER answered that it must have at least two beds and the people being served must stay over night. Those businesses would be eligible to apply for this license, but it must go through a community hearing process and be reviewed every two years. CHAIR BUNDE asked how lodges in remote locations would have a hearing in a community. REPRESENTATIVE MEYER replied that AS 4.11.460 says: Within 50 miles of the borders of the municipality, the licensee must get signatures from a majority of the residents within one mile of the proposed location.... Another section says 50 miles or more from the boundaries of a municipality, the licensee must get signatures from two-thirds of the permanent residents within a five-mile radius of the nearest post office. 1:54:45 PM DOUG GRIFFEN, Director, Alcoholic Beverage Control Board (ABC), supported HB 15 saying it is a balanced and well-constructed bill. He knows that this could put licenses out in rural Alaska where there are lots of concerns about alcohol abuse. He thinks it is critical to limit serving alcohol to registered overnight guests only. This bill will provide regulation and enforcement to currently unregulated and unenforced activity. He noted that alcohol server training is important and should be given to all potential servers. 1:57:08 PM MR. GRIFFIN noted the narrowing affect of amendment and his concern about making the license a general dispensary one. He pointed out that lodge owners can apply for a broader license. CHAIR BUNDE said the license cost of $1,250 is fairly substantial and asked how this fee relates to the cost of processing it. MR. GRIFFIN replied that the fee is one-half the cost of a beverage dispensary license and provides more revenues than needed for processing. However, he said that oversight and enforcement is expensive, but is more difficult to quantify because of those people being paid out of the general fund. "I think the amount it could be argued might be too much for a very small lodge and maybe too little for a large one, but I think it's a reasonable figure." 1:59:44 PM REPRESENTATIVE MEYER pointed out the similarity to club license fees, which are $1,200 and package store license fees, which are $1,500. 2:01:24 PM CHAIR BUNDE said that the Finance Committee would be interested in knowing the cost of administering the license program. BOB KLINE, Operations Manager, Brown Jug Liquor Stores in Anchorage, said he spent 12 years as a member of ABC board and is current chairman of the Government Affairs Committee for Alaska CHARR. His conversations with Representative Meyer led to this legislation, which he supports. 2:03:09 PM CHAIR BUNDE thanked him for his testimony, closed the public hearing and held the bill for another hearing in the near future.