02/07/2007 01:30 PM House FINANCE

HOUSE BILL NO. 34                                                                                                             
                                                                                                                                
     An Act relating to sales of wine by a winery licensee.                                                                     
                                                                                                                                
2:51:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GABRIELLE   LEDOUX,  SPONSOR,   testified  in                                                                   
support  of   the  legislation.   She  explained   that  wine                                                                   
production in Alaska  has just started to develop.   Wineries                                                                   
are now "mom &  pop" businesses.  Under current  law, none of                                                                   
the wineries can sell or ship  a bottle of wine to a customer                                                                   
within  the State  unless the  customer is  on the  premises.                                                                   
Currently, out-of-state wineries  can ship their product into                                                                   
the State of Alaska.  HB 34 would  level the playing field by                                                                   
allowing  in-state  wineries   to  ship  within  Alaska.  The                                                                   
legislation is  identical to HB  431, which passed  the House                                                                   
         th                                                                                                                     
in the 24 legislative session.                                                                                                  
                                                                                                                                
DOUG  GRIFFIN,  (TESTIFIED  VIA   TELECONFERENCE),  DIRECTOR,                                                                   
ALCOHOL BEVERAGE  CONTROL BOARD  (ABCB), ANCHORAGE,  spoke in                                                                   
support  of  the   legislation.    He  emphasized   that  the                                                                   
legislation would be a beneficial  tool to in-state wineries,                                                                   
needing  to  understand  that  there  are  "dry"  communities                                                                   
within Alaska.                                                                                                                  
                                                                                                                                
Representative Hawker identified  concerns regarding underage                                                                   
drinking  & the dry  communities.   Mr. Griffin  acknowledged                                                                   
such  problems and  maintained  that there  is  an effort  to                                                                   
restrict sales to  those under 21 year old.   He acknowledged                                                                   
that   internet  shipments   are  occurring   and  that   the                                                                   
legislation would  allow in-state companies to  ship but that                                                                   
it  must be  delivered to  a person  at least  21 years  old,                                                                   
making sure that a record was signed for the product.                                                                           
                                                                                                                                
2:56:11 PM                                                                                                                    
                                                                                                                                
Co  Chair  Chenault  observed  that wineries  would  have  to                                                                   
follow  all  the current  Alaska  State  laws.   Mr.  Griffin                                                                   
agreed, pointing  out that they  could lose their  ability to                                                                   
operate &  ship product if  they do not  follow the law.   Co                                                                   
Chair  Chenault   mentioned  the  penalties  that   would  be                                                                   
attached.                                                                                                                       
                                                                                                                                
In response to a question by Vice  Chair Stoltze, Mr. Griffin                                                                   
explained that 5 gallons equates  to 2 cases of standard unit                                                                   
size bottles.                                                                                                                   
                                                                                                                                
2:57:58 PM                                                                                                                    
                                                                                                                                
Representative Thomas asked if  wine could be shipped outside                                                                   
Alaska.  Mr.  Griffin noted that the bill allows  shipping of                                                                   
up to 5 gallons out-of-state for personal use.                                                                                  
                                                                                                                                
2:59:07 PM                                                                                                                    
                                                                                                                                
STEVE   THOMSEN,  (TESTIFIED   VIA  TELECONFERENCE),   ALASKA                                                                   
WILDERNESS   WINES,  KODIAK,   spoke   in   support  of   the                                                                   
legislation.                                                                                                                    
                                                                                                                                
Representative Hawker MOVED to  report HB 34 out of Committee                                                                   
with  the   accompanying  fiscal   note.    There   being  NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
HB  34  was  reported  out of  Committee  with  a  "do  pass"                                                                   
recommendation  and with zero  note #1  by the Department  of                                                                   
Public Safety.                                                                                                                  
                                                                                                                                
                                                                                                                                
AT EASE:       3:01:03 PM                                                                                                     
RECONVENED:    3:02:27 PM