04/12/1995 01:40 PM Senate CRA

            HB 180 LIQUOR LICENSES FOR RESORT/LODGES                          
                                                                              
 SENATOR TORGERSON brought  HB 180  before the committee.                      
                                                                               
 BARBARA COTTING, staff to Representative Jeannette James, said  HB
 will allow businesses in more remote areas of organized                   
 boroughs to get a liquor license.  Presently, a small lodge or                
 tourist facility in a remote or inaccessible area or an organized             
 borough has to have 40 rental rooms to obtain a liquor license.               
 She said the sponsor is trying to make this change so that there              
 will not be such stringent requirements in those small remote                 
 areas, which will allow some development of tourist facilities.               
                                                                               
 Number 090                                                                    
                                                                               
 TIM TITTLE, testifying from Anchorage, related that his brother               
 owns a lodge on the Denali Highway.  He said right now, in order to           
 establish the infrastructure to build a small lodge with 10 to 15             
 rooms, which would accommodate fishermen, snow machiners, tourists,           
 etc., the minimum cost would be around $500,000.  To require these            
 individuals who would like to go into this type of a business to              
 build another 25 or 30 rooms would require an additional investment           
 of approximately $300,000, and business people that would like to             
 get into this type of an enterprise will not do it because it                 
 doesn't capitalize out.                                                       
                                                                               
 Mr. Tittle stated his support for HB 180, saying that it will be              
 great for economic development in these remote areas.                         
                                                                               
 Number 120                                                                    
                                                                               
 PAT SHARROCK, Director, Alcoholic Beverage Control Board, testified           
 from Anchorage that the ABC Board supports HB 180.                            
                                                                               
 SENATOR HOFFMAN said there are several lodges out in the Bristol              
 Bay region, and he asked how many lodges will be impacted as a                
 result of HB 180.  He also noted there has been discussion on                 
 annexing the whole Bristol Bay region into a borough.  PAT SHARROCK           
 did not know the number of lodges that would be impacted.  He said            
 the legislation applies only to those businesses that reside within           
 the boundaries of a municipality or borough.  If a business is                
 located outside in the unincorporated area, there are different               
 rules of the road under AS 04.11.400 relating to population                   
 limitations and the number of licenses within a five-mile radius.             
                                                                               
                                                                               
 Number 140                                                                    
                                                                               
 SENATOR TORGERSON directed attention to a his proposed amendment to           
 HB 180 and explained that subparagraphs (A), (B) & (C) are                    
 basically the same language currently in HB 180.  The new                     
 subparagraph (4) defines "highway" to read more directly to what              
 the intent of the sponsor was, which was state maintained roads for           
 public transportation.                                                        
                                                                               
 SENATOR KELLY moved the adoption of the following amendment:                  
                                                                               
 Amendment No. 1                                                             
                                                                               
 Page 2, lines 8 thru 13:  Delete language in paragraph (3) and                
 replace with the following language:                                          
                                                                               
 "(3)  A hotel, motel, resort, or similar business that is inside a           
 unified municipality or organized borough and                                
   (A)  has at least 10 rooms available for the public to                     
 rent;                                                                        
   (B)  cannot be reached by highway from the nearest first                   
 or second class city or established village; or                              
   (C)  could be reached by highway during no more than 10                    
 months in a calendar year preceding the year in which the issuance            
 or transfer is requested."                                                   
                                                                               
 Add new paragraph (4) to read:                                                
                                                                               
  "(4)  "Highway" for purposes of this section is a road                      
 maintained by the state for public transportation."                          
                                                                               
 Hearing no objection to the adoption of the amendment, the motion             
 carried.                                                                      
                                                                               
 SENATOR KELLY moved that SCS HB 180(CRA) be passed out of committee           
 with individual recommendations.  Hearing no objection, it was so             
 ordered.