03/28/2024 08:00 AM House COMMUNITY & REGIONAL AFFAIRS

               HB 168-ALCOHOL SALES: LOCAL OPTION                                                                           
                                                                                                                                
8:31:09 AM                                                                                                                    
                                                                                                                                
CHAIR MCCORMICK announced that the  final order of business would                                                               
be HOUSE BILL  NO. 168, "An Act relating to  alcohol; relating to                                                               
local  option elections;  relating to  the statewide  database of                                                               
alcohol  purchases; relating  to alcohol  licenses, endorsements,                                                               
and  permits; relating  to municipal  regulation and  taxation of                                                               
alcoholic beverages; and providing for an effective date."                                                                      
                                                                                                                                
8:31:26 AM                                                                                                                    
                                                                                                                                
PAUL  LABOLLE, Staff,  Representative Neal  Foster, Alaska  State                                                               
Legislature, on  behalf of Representative Foster,  prime sponsor,                                                               
presented  HB   168.    He  paraphrased   the  sponsor  statement                                                               
[included  in  the  committee  packet],  which  read  as  follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     House Bill  168 adds a  new local option  regarding the                                                                    
     sale of  alcohol. Currently,  communities that  want to                                                                    
     operate  an alcohol  beverage  store  must operate  all                                                                    
     alcohol   sales   venues   (for   example,   bars   and                                                                    
     restaurants that  sell alcohol). House Bill  168 allows                                                                    
     communities to operate an  alcohol beverage store while                                                                    
     leaving  establishments like  bars  and restaurants  in                                                                    
     private hands.                                                                                                             
                                                                                                                                
8:33:13 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HIMSCHOOT questioned the genesis of the bill.                                                                    
                                                                                                                                
MR. LABOLLE stated  that the bill was  brought to [Representative                                                               
Foster] by a constituent who  had noticed a problem with vagrancy                                                               
in  his/her  town,  which was  generated  by  people  frequenting                                                               
liquor stores.   The constituent  believed that  the municipality                                                               
could do a better job at  controlling the sale of alcohol but did                                                               
not want  to infringe on  the licensed restaurant and  bar owners                                                               
in the private sector.                                                                                                          
                                                                                                                                
8:34:07 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MEARS asked how  local communities were responding                                                               
to the bill.                                                                                                                    
                                                                                                                                
MR.  LABOLLE  said  one  city  council that  he  spoke  with  was                                                               
interested in the idea but not pushing for it.                                                                                  
                                                                                                                                
REPRESENTATIVE  MEARS  highlighted  the importance  of  gathering                                                               
feedback from the communities that would be impacted.                                                                           
                                                                                                                                
MR. LABOLLE replied  that he viewed the bill as  the beginning of                                                               
the conversation.                                                                                                               
                                                                                                                                
8:35:13 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HIMSCHOOT  asked whether  the bill  would undercut                                                               
the decisions of the local community.                                                                                           
                                                                                                                                
MR. LABOLLE  clarified that the bill  would add   not  modify - a                                                               
local option.                                                                                                                   
                                                                                                                                
CHAIR MCCORMICK invited Ms. Wilson to speak to the bill.                                                                        
                                                                                                                                
8:36:39 AM                                                                                                                    
                                                                                                                                
JOAN  WILSON,  Director,  Alcohol and  Marijuana  Control  Board,                                                               
Department   of  Commerce,   Community  &   Economic  Development                                                               
(DCCED),  conveyed  that community  of  Nome,  which allowed  for                                                               
private  ownership of  alcoholic  beverage  licenses, was  having                                                               
trouble  with public  intoxication.   She explained  that private                                                               
owners of  the local package  stores worked with city  council to                                                               
draft  a memorandum  of understanding  (MOU) that  restricted the                                                               
sale and  volume of alcohol.   She reported  that as a  result of                                                               
the MOU, the problem had greatly  dissipated.  With regard to the                                                               
bill,  she expressed  concern  that the  two  [package stores  in                                                               
Nome] would  lose their  licenses should  it pass.   Nonetheless,                                                               
she stated that  neither the Alcohol and  Marijuana Control Board                                                               
("the board") nor  the governor had a position on  HB 168, except                                                               
her  own concern  for  capitalism.   She added  that  there is  a                                                               
strong interest  in allowing the  people in local  communities to                                                               
choose what's right  for them.  She reported that  the board took                                                               
the  issue in  Nome  very seriously  and  considered denying  the                                                               
renewal of both  package stores, which spawned  the importance of                                                               
the MOU.   She added  that the board,  the city council,  and the                                                               
package store worked well together.                                                                                             
                                                                                                                                
8:40:51 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HIMSCHOOT asked  how  many  communities would  be                                                               
impacted by the bill.                                                                                                           
                                                                                                                                
MS. WILSON said any community  could participate.  She shared her                                                               
belief  that larger  hub cities,  such as  Bethel, Kotzebue,  and                                                               
Nome would be the most interested in the proposal.                                                                              
                                                                                                                                
8:42:18 AM                                                                                                                    
                                                                                                                                
REPRESENATIVE BAKER  added additional context about  his hometown                                                               
of Kotzebue.   He recalled  that in 2010  or 2011, the  city went                                                               
from being a  damp community to a wet community  with a municipal                                                               
owned and operated  package store and the ambition to  open a bar                                                               
and grill as  a local option, which was a  difficult task for the                                                               
municipality.                                                                                                                   
                                                                                                                                
8:43:56 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCABE pointed out that last time [the                                                                           
legislature] tried to amend Title 4 it took nine years with                                                                     
Senator Micciche's Senate Bill 9.                                                                                               
                                                                                                                                
8:44:25 AM                                                                                                                    
                                                                                                                                
CHAIR MCCORMICK announced that HB 168 would be held over.