05/02/1995 01:40 PM Senate L&C

            HB 180 LIQUOR LICENSES FOR RESORT/LODGES                          
                                                                              
 SENATOR KELLY announced HB 180 to be up for consideration.                    
                                                                               
 BARBARA COTTING, Aide to Representative Jeannette James, said this            
 bill was requested by lodge owners in very remote areas of                    
 organized boroughs and the Alcohol Beverage Control Board to                  
 correct an inequity.  Right now a person in a very remote area with           
 a large population has to have 40 rental rooms in order to have a             
 full service liquor license.  Those licenses are quite important              
 for lodge owners to be able to stay in business.                              
                                                                               
 SENATOR SALO said she knows of remote lodges that don't have 40               
 rooms and do serve liquor and asked if there was a waiver process             
 already.                                                                      
 PATRICK SHARROCK, Director, Alcoholic Beverage Control Board, said            
 there aren't waivers currently under the statute.  He is under the            
 impression that some guests bring their own alcohol.                          
                                                                               
 SENATOR KELLY asked if there was a difference in the organized and            
 unorganized borough.  MR. SHARROCK said there was a difference in             
 the way licenses are issued in the organized and the unorganized              
 borough.  The proposed legislation does not address the unorganized           
 borough, because there are separate divisions of law for that.                
                                                                               
 MR. SHARROCK said the number of room required in the Kenai and Mat-           
 Su borough is 40, because of the population within those boroughs             
 excluding the population in cities.                                           
                                                                               
 SENATOR SALO asked if this meant 40 rooms or 40 beds.  MR. SHARROCK           
 answered 40 rooms.  The McLaren River Lodge, the particular one               
 this bill addresses, is on the Denali Highway between Paxson and              
 Healy.  It, of course, would allow other business people within               
 boroughs and unified municipalities to meet the new requirement               
 law.  This is supported by the Board.                                         
                                                                               
 SENATOR TORGERSON asked if these licenses are like a beer and wine            
 license.  MR. SHARROCK explained this is a full service license and           
 cannot be transferred to another location.                                    
                                                                               
 Number 120                                                                    
 SENATOR SALO asked if a place didn't have 40 rooms would they be              
 able to sell liquor with food currently.  MR. SHARROCK said they              
 could if they have a minimum of 10 rooms (unorganized borough).               
                                                                               
 SENATOR KELLY said in the Board's opinion this would not                      
 proliferate the number of beverage dispensing licenses available.             
 MR. SHARROCK said that was one of the Board's main concerns and               
 they found clearly that it would not, because of the limiting                 
 factor of having to be on a road that isn't open any less than two            
 months out of the year.  The Board thinks this legislation is                 
 simply addressing an inequity.                                                
                                                                               
 SENATOR TORGERSON asked if section 3 of this bill applies to the              
 Kenai Borough.  MR. SHARROCK said, yes, that applies to the Kenai             
 Borough.                                                                      
                                                                               
 Number 176                                                                    
                                                                               
 MIKE TIBLE, owner of McLaren River Lodge, supported SB 160.  He               
 said he just about single handedly opened up the Denali Highway to            
 winter recreation and tourism and he is flanked on both sides by              
 lodges that have full liquor licenses.  Economically, it doesn't              
 make a lot of sense just because he's a mile and a half inside the            
 Mat-Su Borough.  He said this bill would allow the promotion of               
 tourism in the state by small entrepreneurs, like himself.                    
                                                                               
 SENATOR TORGERSON moved to pass HB 180 with individual                        
 recommendations.  There were no objections and it was so ordered.