03/18/2020 03:15 PM House LABOR & COMMERCE

                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                         March 18, 2020                                                                                         
                           3:32 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Ivy Spohnholz, Chair                                                                                             
Representative Louise Stutes                                                                                                    
Representative Zack Fields                                                                                                      
Representative Sara Hannan                                                                                                      
Representative Andi Story                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Mel Gillis                                                                                                       
Representative Sara Rasmussen                                                                                                   
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CS FOR SENATE BILL NO. 52(FIN) AM                                                                                               
"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."                                                                                                                
                                                                                                                                
     - MOVED CSSB 52(FIN) AM OUT OF COMMITTEE                                                                                   
                                                                                                                                
HOUSE BILL NO. 257                                                                                                              
"An Act relating  to the Alaska Banking Code;  relating to mutual                                                               
savings   banks;  relating   to   interstate   state  banks   and                                                               
international banks; relating  to the pledging of  bank assets as                                                               
collateral  security to  tribal  organizations;  relating to  the                                                               
pledging of  bank assets for  interest swap  agreements; relating                                                               
to state  business licenses; relating  to persons who  make loans                                                               
secured  by  interests  in vessels  or  facilities;  relating  to                                                               
liability  for the  release or  threatened  release of  hazardous                                                               
substances;  relating to  the Model  Foreign Bank  Loan Act;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
     - BILL HEARING CANCELED                                                                                                    
                                                                                                                                
SENATE BILL NO. 195                                                                                                             
"An Act relating to election of a domestic insurer's board of                                                                   
directors."                                                                                                                     
                                                                                                                                
     - BILL HEARING CANCELED                                                                                                    
                                                                                                                                
SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 146                                                                                       
"An Act relating to an application for a license to operate as a                                                                
dealer in motor vehicles; and requiring a dealer in motor                                                                       
vehicles to maintain liability and property insurance."                                                                         
                                                                                                                                
     - BILL HEARING CANCELED                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB  52                                                                                                                  
SHORT TITLE: ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG                                                                            
SPONSOR(s): SENATOR(s) MICCICHE                                                                                                 
                                                                                                                                
02/11/19       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/11/19       (S)       L&C, JUD, FIN                                                                                          
03/26/19       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/26/19       (S)       Heard & Held                                                                                           
03/26/19       (S)       MINUTE(L&C)                                                                                            
03/28/19       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/28/19       (S)       Heard & Held                                                                                           
03/28/19       (S)       MINUTE(L&C)                                                                                            
04/02/19       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/02/19       (S)       Heard & Held                                                                                           
04/02/19       (S)       MINUTE(L&C)                                                                                            
04/04/19       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/04/19       (S)       -- MEETING CANCELED --                                                                                 
04/09/19       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/09/19       (S)       Heard & Held                                                                                           
04/09/19       (S)       MINUTE(L&C)                                                                                            
04/11/19       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/11/19       (S)       Heard & Held                                                                                           
04/11/19       (S)       MINUTE(L&C)                                                                                            
04/16/19       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/16/19       (S)       Moved CSSB 52(L&C) Out of Committee                                                                    
04/16/19       (S)       MINUTE(L&C)                                                                                            
04/17/19       (S)       L&C RPT CS FORTHCOMING 4DP                                                                             
04/17/19       (S)       DP: REINBOLD, COSTELLO, BIRCH, BISHOP                                                                  
04/17/19       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/17/19       (S)       -- MEETING CANCELED --                                                                                 
04/17/19       (S)       JUD AT 6:00 PM BELTZ 105 (TSBldg)                                                                      
04/17/19       (S)       -- MEETING CANCELED --                                                                                 
04/19/19       (S)       L&C CS RECEIVED SAME TITLE                                                                             
04/22/19       (S)       JUD AT 6:00 PM BELTZ 105 (TSBldg)                                                                      
04/22/19       (S)       Heard & Held                                                                                           
04/22/19       (S)       MINUTE(JUD)                                                                                            
04/23/19       (S)       JUD AT 6:00 PM BELTZ 105 (TSBldg)                                                                      
04/23/19       (S)       Heard & Held                                                                                           
04/23/19       (S)       MINUTE(JUD)                                                                                            
04/24/19       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/24/19       (S)       Heard & Held                                                                                           
04/24/19       (S)       MINUTE(JUD)                                                                                            
04/26/19       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/26/19       (S)       Moved CSSB 52(JUD) Out of Committee                                                                    
04/26/19       (S)       MINUTE(JUD)                                                                                            
04/29/19       (S)       JUD RPT CS  2DP 1AM SAME TITLE                                                                         
04/29/19       (S)       DP: HUGHES, MICCICHE                                                                                   
04/29/19       (S)       AM: KIEHL                                                                                              
02/11/20       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
02/11/20       (S)       Heard & Held                                                                                           
02/11/20       (S)       MINUTE(FIN)                                                                                            
02/19/20       (S)       FIN RPT CS FORTHCOMING 2DP 2NR 1AM                                                                     
02/19/20       (S)       DP: VON IMHOF, BISHOP                                                                                  
02/19/20       (S)       NR: WIELECHOWSKI, HOFFMAN                                                                              
02/19/20       (S)       AM: WILSON                                                                                             
02/19/20       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
02/19/20       (S)       Moved CSSB 52(FIN) Out of Committee                                                                    
02/19/20       (S)       MINUTE(FIN)                                                                                            
02/21/20       (S)       FIN CS RECIEVED                  SAME                                                                  
                         TITLE                                                                                                  
02/26/20       (S)       TRANSMITTED TO (H)                                                                                     
02/26/20       (S)       VERSION: CSSB 52(FIN) AM                                                                               
02/28/20       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/28/20       (H)       L&C, FIN                                                                                               
03/09/20       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/09/20       (H)       Heard & Held                                                                                           
03/09/20       (H)       MINUTE(L&C)                                                                                            
03/11/20       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/11/20       (H)       Heard & Held                                                                                           
03/11/20       (H)       MINUTE(L&C)                                                                                            
03/16/20       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/16/20       (H)       Heard & Held                                                                                           
03/16/20       (H)       MINUTE(L&C)                                                                                            
03/18/20       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
SENATOR PETER MICCICHE                                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   As prime  sponsor,  provided comments  and                                                             
answered questions during the hearing on SB 52.                                                                                 
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:32:36 PM                                                                                                                    
                                                                                                                                
CHAIR IVY SPOHNHOLZ called the  House Labor and Commerce Standing                                                             
Committee meeting to order at  3:32 p.m.  Representatives Stutes,                                                               
Fields, Hannan, Story, and Spohnholz  were present at the call to                                                               
order.                                                                                                                          
                                                                                                                                
         SB 52-ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG                                                                      
                                                                                                                                
3:33:08 PM                                                                                                                    
                                                                                                                                
CHAIR SPOHNHOLZ announced that the  first order of business would                                                               
be  CS FOR  SENATE  BILL  NO. 52(FIN)  am,  "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."                                                                                                                          
                                                                                                                                
3:33:28 PM                                                                                                                    
                                                                                                                                
SENATOR PETER  MICCICHE, Alaska State Legislature,  prime sponsor                                                               
of SB 52, stated  that its  an important bill.   He added that it                                                               
will be more important as the  industry works to recover from the                                                               
impacts  [of the  coronavirus].   He  thanked  the committee  for                                                               
hearing the bill.                                                                                                               
                                                                                                                                
CHAIR  SPOHNHOLZ  agreed.    She  offered  her  belief  that  the                                                               
industry will  be devastated over  the coming months as  a result                                                               
of  mandated  social  distancing.     She  said  everything  [the                                                               
legislature] can do to provide stability is important.                                                                          
                                                                                                                                
3:34:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STORY offered  her  understanding that  if SB  52                                                               
were to pass,  the current recreational site  licenses would have                                                               
seven  or eight  years    depending on  the license  number -  to                                                               
continue  operating similarly.    She provided  an  example of  a                                                               
bowling alley whose  patrons consume beer and wine  by the lanes.                                                               
Assuming the  bowling alley  doesnt  have  any violations  and is                                                               
licensed under  the current recreational site  license, she asked                                                               
if they could continue to do so.                                                                                                
                                                                                                                                
SENATOR  MICCICHE confirmed  that.   He  said in  those seven  or                                                               
eight years there will likely  be a transition to another license                                                               
type, which is an opportunity created by SB 52.                                                                                 
                                                                                                                                
REPRESENTATIVE STORY  pointed out that  there is  a gap in  SB 52                                                               
concerning bowling alleys.  She  added that if it goes unchanged,                                                               
they will  either need a  full beverage dispensary  license (BDL)                                                               
or a  tourism license to operate.   She said its   something that                                                               
needs to be  addressed in the next seven  years; nonetheless, she                                                               
expressed her excitement about the bill overall.                                                                                
                                                                                                                                
SENATOR MICCICHE agreed  wholeheartedly.  He said  there is still                                                               
additional work to  do, adding that this is not  the  end-all be-                                                               
all.                                                                                                                            
                                                                                                                                
3:37:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES  stated that  she has  significant concerns                                                               
about the bill.   Her primary concern, she said,  is the issue of                                                               
enforcement and who will do it.   She expressed concern about the                                                               
expansion  of  certain license  parameters.    She addressed  the                                                               
coronavirus, saying that it will  affect everyone, especially the                                                               
BDL  license holders.   Nonetheless,  she  acknowledged the  hard                                                               
work  that Senator  Micciche, as  well as  the industry,  has put                                                               
into the bill.                                                                                                                  
                                                                                                                                
CHAIR SPOHNHOLZ  opined that enforcement  has been  undermined by                                                               
the  severity of  some of  the current  sanctions.   She said  an                                                               
important  element  of   SB  52  is  that   it  rationalizes  and                                                               
modernizes the sanctions and includes  a fiscal note to allow for                                                               
enforcement.                                                                                                                    
                                                                                                                                
SENATOR   MICCICHE    acknowledged   the   statement    made   by                                                               
Representative Stutes.   He explained  that SB 52 did  not create                                                               
the competition between  licensees and those that  have created a                                                               
new  business model.   That  situation, he  said, existed  before                                                               
this legislation came about.  He  added that the bill attempts to                                                               
provide a compromise that works  for now; however, there is still                                                               
more to do.                                                                                                                     
                                                                                                                                
3:42:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN  reflected on  her experience  regarding SB
.  She  acknowledged the hard work of Senator  Micciche and his                                                               
staff, as well as from the industry and stakeholders.                                                                           
                                                                                                                                
3:43:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES moved  to report  CSSB 52(FIN)  am out  of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal notes.  Without objection,  CSSB 52(FIN) am was moved from                                                               
the House Labor and Commerce Standing Committee.                                                                                
                                                                                                                                
3:43:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS  inquired about  the insurance bill  on the                                                               
agenda.   He indicated  the committees   interest in  moving that                                                               
legislation   forward,  whether   its    before   or  after   the                                                               
coronavirus-related recess.                                                                                                     
                                                                                                                                
CHAIR SPOHNHOLZ agreed.  She  explained that the bills on todays                                                                
calendar were moved,  not due to a lack of  interest, but because                                                               
there are time-sensitive issues related to COVID-19 to address.                                                                 
                                                                                                                                
3:45:08 PM                                                                                                                    
                                                                                                                                
CHAIR  SPOHNHOLZ  announced that  the  House  Labor and  Commerce                                                               
Standing Committee was recessed at 3:45 to a call of the chair.                                                                 
                                                                                                                                
7:45:50 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Labor and  Commerce Standing Committee  meeting was  adjourned at                                                               
7:46 p.m.