Legislature(2025 - 2026)BARNES 124
01/27/2025 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB68 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 68 | TELECONFERENCED | |
HB 68-ALCOHOL: SALE, WARNING SIGNS
[Contains discussion of HB 37.]
3:17:00 PM
CO-CHAIR FIELDS announced that the only order of business would
be HOUSE BILL NO. 68, "An Act relating to the sale of alcohol;
and relating to the posting of warning signs for alcoholic
beverages."
CO-CHAIR FIELDS noted that HB 68 is identical to legislation
nearly passed during the Thirty-Third Alaska State Legislature,
with one change being the bill would go into effect 90 days
after passage.
3:17:53 PM
EVAN ANDERSON, Staff, Representative Zack Fields, gave the
sectional analysis for HB 68 [copy included in the committee
file] on behalf of the bill sponsor, House Labor and Commerce
Standing Committee, on which Representative Fields serves as co-
chair. The sectional analysis read as follows [original
punctuation provided]:
Section 1. Amends AS 04.09.210(c) - Restaurant or
eating place license
Allows the board to issue or renew a license if there
is supervision on the premises to ensure that those
under 21 will not obtain alcoholic beverages except if
they are employed per new AS 04.09.049(d).
Section 2. Amends AS 04.09.210(d) - Restaurant or
eating place license
Authorizes the license holder to employ those aged 16
to 21 years but requires adequate supervision to
employees who are 16 or 17 years of age, so they do
not obtain alcoholic beverages.
Section 3. Amends AS 04.09.250(c) Theater license
Expands the time period in which a theater license
holder may sell or serve alcoholic beverages in
designated areas. Removes intermission language.
Section 4. Amends AS 04.09.360(c) Seasonal
restaurant or eating place tourism license Allows the
board to issue or renew a license if there is
supervision on the premises to ensure that those under
21 will not obtain alcoholic beverages except if they
are employed per new AS 04.09.049(d).
Section 5. Amends AS 04.09.360(f) Seasonal
restaurant or eating place tourism license Authorizes
the license holder to employ those aged 16 to 21 years
but requires adequate supervision to employees who are
16 or 17 years of age, so they do not obtain alcoholic
beverages.
Section 6. Amends AS 04.09.450(d) Restaurant
endorsement
Allows the board to issue an endorsement if there is
supervision on the premises to ensure that those under
21 will not obtain alcoholic beverages except if they
are employed per new AS 04.09.049(d).
Prepared by the Office of Representative Fields 2
Section 7. Amends AS 04.09.450(e) Restaurant
endorsement
Authorizes the license holder to employ those aged 16
to 21 years but requires adequate supervision to
employees who are 16 or 17 years of age, so they do
not obtain alcoholic beverages.
Section 8. Amends AS 04.16.049(d) Access of persons
under the age of 21 to licensed premises: Allows those
who are aged 18, 19, or 20 employed by a licensee to
serve, sell, deliver, and dispense alcoholic
beverages. Adds "and, other than for the business that
offers adult entertainment" to ensure that adult
entertainment establishments are excluded.
Section 9. Amends AS 04.16.049(h) Access of persons
under the age of 21 to licensed premises: Allows those
under the age of 21 to be present on the licensed
premises of a theater license holder if the person is
at least 16 years of age; if they are under 16, they
must be accompanied by a person who is at least 21
years of age, and a parent or legal guardian of the
underaged person consents.
Section 10. Amends AS 04.16.052(a) Furnishing of
alcoholic beverages to persons under the age of 21 by
licensees: Allows licensees or an agent or employee of
the license to allow another person to sell, barter,
or give an alcoholic beverage to a person under the
age of 21 years only under the provisions in AS
04.16.049(d).
Section 11. Amends 04.21.065(b) Posting of warning
signs
Requires that vendors of alcohol replace their sign
that reads: "WARNING: Drinking alcoholic beverages
such as beer, wine, wine coolers, and distilled
spirits or smoking cigarettes during pregnancy can
cause birth defects." with a new sign that reads:
"WARNING: Alcohol use during pregnancy can cause birth
defects. Alcohol use can cause cancer, including
breast and colon cancers."
Section 12. Amends 04.21.080 Definitions
Adds paragraph (31) to read "business that offers
adult entertainment" has the meaning given in AS
23.10.350(f).
Section 13. Repeals AS 04.09.250(d) - Theater license
Repeals the provision that prohibits the sale,
service, and consumption of alcoholic beverages in the
audience viewing area of a theater.
3:22:32 PM
CO-CHAIR FIELDS, in response to a question from Representative
Saddler, affirmed that he had consulted a majority of committee
members regarding committee sponsorship for HB 68.
3:23:58 PM
The committee took a brief at-ease at 3:23 p.m.
3:24:37 PM
REPRESENTATIVE COULOMBE asked about the definition of "adequate
supervision" in the provisions of HB 68. She further asked
whether licensees would receive a fine if they did not provide
"adequate supervision".
3:25:16 PM
JOE BANKOWSKI, Enforcement Supervisor, Alcohol & Marijuana
Control Office, Department of Commerce, Community & Economic
Development (DCCED), responded that there is not a set
definition of adult supervision. He stated someone over the age
of 21 would be present and in the general vicinity of an
underage individual to monitor their activities.
3:25:44 PM
REPRESENTATIVE COULOMBE asked whether "adult supervision" would
be more appropriate than "adequate".
3:26:11 PM
MR. BANKOWSKI responded that the expectation would be adult
supervision.
3:26:31 PM
REPRESENTATIVE CARRICK stated that in supporting documents
[included in the committee file], the state-by-state comparison
appeared to make distinction between the minimum age to serve
and minimum age to bartend. Representative Carrick asked
whether the language of HB 68 is more akin to the State of
Georgia's law, where the minimum age to serve and bartend is 18;
or the State of California's law, where the minimum age to serve
is 18, whereas the minimum age to bartend is 21.
3:27:30 PM
CO-CHAIR FIELDS stated that invited and public testifiers would
likely answer the question. Co-Chair Fields began invited
testimony on HB 68.
3:28:03 PM
LEE ELLIS, Board President, Brewers Guild of Alaska, stated that
there is not a widespread interest in employing underage
individuals; however, a lack of staffing has become an issue of
significance. He stated there are a lot of jobs that would
allow young people the flexibility to work part-time,
particularly in the busy Alaska summers. He stated HB 68 would
allow for more employees in the areas of retail, delivery,
cooking, and warehouse work. He expressed support for HB 68.
3:29:34 PM
RALPH SAMUELS, Vice President of External Affairs, Holland
America Princess (HAP), stated that HAP hires an estimated 3,500
to 4,000 seasonal workers every year. He stated HAP operates
many hotels in Alaska, including the Kenai Princess, the Copper
Princess, the McKinley Princess, the Riverside Princess Lodge,
the Westmark (Fairbanks, Alaska), the Holland-America Denali
Lodge, and the Denali Princess (largest hotel in Alaska).
Between all the properties, Mr. Samuels noted that there are
approximately 25-30 restaurants, ranging from coffee bars to
high-end seasonal restaurants. He stated that 18- to 20-year-
olds can work in an industry where they would make tips.
Additionally, they would have an opportunity earlier in their
lives to become supervisors and learn valuable skills in
business management. He stated that the tourism industry loses
a lot of people between the ages of 18-20 to other jobs. He
expressed support for HB 68, and thanked committee members for
acting swiftly to pass the bill.
3:34:00 PM
SARAH OATES HARLOW, President & CEO, Alaska Cabaret, Hotel,
Restaurant and Retailers Association (CHARR), stated that CHARR
represents 2,000+ hospitality establishments and employs 36,000+
workers across the state. She stated that Alaska's hospitality
industry continues to face significant ongoing challenges to
business operations, the largest of which being work shortages.
Along with Utah and Nevada, Alaska is one of three states that
does not allow employees younger than 21 to serve alcohol. She
stated that employers struggle to retain employees 18-20 years
old, and the hospitality industry is experiencing out migration
of young workers. She stated that Alaska is not competitive in
the hospitality industry. Ms. Oates Harlow finished with an
anecdote, stating that when she was a young woman, she served
and bartended while in college in the Pacific Northwest (PNW).
She chose to remain in the PNW during her school breaks, instead
of returning to Alaska, so that she could continue to serve and
bartend. Ms. Oates Harlow affirmed her support for HB 68,
stating hospitality is Alaska's second largest industry.
3:36:29 PM
CO-CHAIR FIELDS opened public testimony on HB 68.
3:36:45 PM
DAVID MCCARTHY, Owner & Founder, Northern Hospitality Group,
testified in support of HB 68. He agreed that HB 68 could
partially address the current labor shortage in the hospitality
industry. He stated that 47 other states have already adopted
changes like HB 68, and there is a longstanding framework
already in place. He maintained that the bill would build a
stronger community. He stated that required Training for
Alcohol Professionals (TAPs) means employees of all ages would
be educated on the dangers of alcohol. Mr. McCarthy asserted
that no guests or staff under the age of 21 would be consuming
alcohol. He offered his belief that working in hospitality
creates critical-thinking, problem-solving, and decision-making
skills. He noted there is flexibility in work shifts, and
additional financial incentives for young adults due to the
tipping nature of many of the jobs.
3:40:51 PM
REPRESENTATIVE SADDLER asked about the estimated effectiveness
of alcohol signs that are currently posted, as required by
Alaska state law.
3:41:22 PM
MR. MCCARTHY offered his belief that there is a public
understanding that drinking may harm health. He maintained that
the alcohol signs are an important public reminder; however, he
does not think that consumers would change their drinking habits
based on warnings posted on signs.
3:42:00 PM
REPRESENTATIVE SADDLER asked whether Mr. McCarthy agreed that
the addition of cancer provisions on alcohol warning signs is
unlikely to influence alcohol consumption habits.
3:42:19 PM
MR. MCCARTHY responded that it's difficult to predict whether it
would have a significant effect. Ultimately, the information is
public. He cannot directly say that it would change the usage,
nor would he support adding cancer provisions for fear of it
decreasing alcohol sales.
3:43:00 PM
REPRESENTATIVE SADDLER asked whether Mr. McCarthy believed there
were any other warning signs that would be appropriate to post
at establishments serving alcohol.
3:43:25 PM
MR. MCCARTHY responded that the requirement to provide
identification (ID) is the rule that would have the most impact
on underage drinking. He remarked that he could not think of
any other hazards to post that have not already been made public
information.
3:44:13 PM
DIANE THOMPSON, President, Alaska Hospitality Retailers,
testified in support of HB 68. She stated she is one of the
owners of Firetap Alehouse in Anchorage, Alaska. She offered
her belief that the [hospitality] workforce in Anchorage is
"weak." In response to a repeated question from Representative
Saddler, she stated her belief that the sign with the greatest
impact on alcohol consumption is the sign warning people that if
they drive drunk, they could lose their [license]. She agreed
with Mr. McCarthy, noting that health hazards associated with
consumption of alcohol are public.
3:47:05 PM
AARON OSTERBACK, Representing Self, testified in opposition to
HB 68. He stated he is a lifelong Alaskan, Aleut, and a parent
of three children. He stated his belief that the hospitality
industry should not look to the youth to fill labor shortages
and should instead investigate the causes of labor shortages.
He stated that overconsumption of alcohol is an issue of
significance in Alaska, particularly for Alaska Natives. He
asserted that safeguards [to prevent underage drinking]
described by previous testimony would be ineffective. He opined
that a bar environment is not suitable for minors as a place of
work. He stated that he sees patrons in bars and restaurants
often overserved, and asked what the protocol might look like
for a minor serving an adult who is overly intoxicated. Mr.
Osterback felt that working as a minor in an environment serving
alcohol could open of avenues of abuse. He stated his belief
that working at a coffee shop or fast-food restaurant would be
more of an appropriate introduction to the hospitality industry
for youth entering the workforce. Mr. Osterback posed a
question to committee members, asking if they would feel
comfortable with their children/grandchildren serving alcohol
under the provisions of HB 68.
3:52:05 PM
TIFFANY HALL, CEO, Recover Alaska, testified in opposition to HB
68. Ms. Hall asserted that exposure to alcohol at a young age
undermines public health objectives, increases community costs,
and places vulnerable youth at greater risk of harassment,
exploitation, and trauma. Research shows early exposure to
alcohol normalizes underage drinking, leading to higher rates of
alcohol misuse, long-term health consequences, and alcohol-
related fatalities. She argued that lowering the legal age to
serve would not effectively address the labor shortage.
Instead, the hospitality industry should focus on increasing
wages, better working conditions, and automation to attract a
workforce. She noted that underage alcohol consumption is "one
of the very few areas" where Alaska is performing above the
national average. She stated that younger employees in
environments serving alcohol face a higher risk of sexual
harassment. Additionally, she stated the restaurant industry
reports high rates of child labor violations and maintained that
lowering the server age would exacerbate existing issues of
child labor violations in the industry. Ms. Hall asked for
additional amendments, should HB 68 pass, including increased
licensee liability for all violations involving underage
employees, mandated public health involvement or review of the
TAPs training, raised age limit to 19 years old, limited hours
underage employees are allowed to work, and required statewide
mandatory ID checks. In response to an earlier question from
Representative Saddler, Ms. Hall noted that Recover Alaska
strongly supported the provisions in HB 68 for cancer warnings.
She urged the committee to look at Representative Gray's bill
[HB 37], which she stated is about freedom of information. Ms.
Hall cautioned that alcohol is the third-leading preventable
cause of cancer, and cancer is the leading cause of death in
Alaskans.
3:56:42 PM
CO-CHAIR FIELDS closed public testimony on HB 68.
3:56:46 PM
CO-CHAIR FIELDS stated that he would be comfortable with his
children serving alcohol under HB 68, in response to Mr.
Osterback's question. He asked Mr. Bankowski to address
Representative Carrick's question from earlier in the hearing.
3:57:40 PM
MR. BANKOWSKI stated his belief that a distinction would need to
be made between a bar and restaurant venue. He believed that
the bill does not allow for 18 to 20-year-olds to serve at
standalone bars. He offered his belief that the intention is
for 18- to 20-years-olds to serve at facilities with a beverage
dispensary license and a restaurant endorsement.
3:58:29 PM
REPRESENTATIVE CARRICK asked whether an 18- to 20-year-old would
be able to work behind a bar and serve tables at a business like
Glacier Brewhouse in Anchorage, Alaska, which has both a bar and
a restaurant.
3:59:06 PM
MR. BANKOWSKI answered that was his interpretation, if the
business were eligible under HB 68.
3:59:21 PM
REPRESENTATIVE CARRICK restated that an 18- to 20-year-old
could, under HB 68, work at a restaurant/bar, but they could not
work at a standalone bar, such as [Darwin's Theory] in
Anchorage, Alaska.
3:59:43 PM
MR. BANKOWSKI confirmed that was his interpretation.
4:00:32 PM
REPRESENTATIVE SADDLER asked Ms. Hall about the estimated
effectiveness of alcohol signs that are currently posted, as
required by Alaska state law.
4:00:57 PM
MS. HALL responded that she did not have numbers on the current
warning signs, but that she would research the question. She
cited a study in Canada, wherein a short trial concluded that
alcohol consumption was reduced by 6 percent when consumers were
made aware of its carcinogenic effects. In response to a
follow-up question from Representative Saddler as to why Ms.
Hall supported HB 37, she explained that she strongly opposed
the service of alcohol by 18- to 20-year-olds but strongly
supported the inclusion of provisions for cancer warnings in
signs posted in establishments serving/selling alcohol. She
noted that HB 37 pertains only to the inclusion of cancer
warnings in signs posted in establishments serving/selling
alcohol.
4:02:09 PM
CO-CHAIR FIELDS announced the amendment deadline for HB 68 is 9
a.m., Wednesday, January 29.
[HB 68 was held over.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 68 - Sponsor Statement.pdf |
HL&C 1/27/2025 3:15:00 PM |
HB 68 |
| HB 68 - Sectional Analysis v.A.pdf |
HL&C 1/27/2025 3:15:00 PM |
HB 68 |
| HB 68 Supporting Document-State by State Comparison.pdf |
HL&C 1/27/2025 3:15:00 PM |
HB 68 |
| HB 68 - Fiscal Note - DCCED 01.pdf |
HL&C 1/27/2025 3:15:00 PM |
HB 68 |