03/11/2024 03:15 PM House LABOR & COMMERCE

               HB 189-SALE OF ALCOHOL BY UNDER 21                                                                           
                                                                                                                                
3:20:58 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER announced that the  first order of business would be                                                               
HOUSE BILL NO. 189, "An Act  relating to the sale of alcohol; and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
3:21:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RUFFRIDGE  moved to  adopt the  proposed committee                                                               
substitute  (CS) for  HB 189,  Version  33-LS0697\S, C.  Radford,                                                               
1/15/24, as the working document.                                                                                               
                                                                                                                                
CHAIR SUMNER objected.                                                                                                          
                                                                                                                                
3:22:03 PM                                                                                                                    
                                                                                                                                
SARENA  HACKENMILLER,  Staff,  Representative  Jesse  Sumner,  on                                                               
behalf  of on  behalf of  the House  Labor and  Commerce Standing                                                               
Committee, sponsor by request,  chaired by Representative Sumner,                                                               
paraphrased   the  sponsor   statement  [included   in  committee                                                               
packet], which read as follows:                                                                                                 
                                                                                                                                
     HB189  would aim  to change  existing Alaska  statutes,                                                                    
     that would allow  employees between the ages  of 18 and                                                                    
     20  to  sell,  serve,  deliver,  and  dispense  alcohol                                                                    
     within  restaurants  and  other specified  license  and                                                                    
     endorsement types  under appropriate  supervision. This                                                                    
     bill also modifies hours that  a theater license holder                                                                    
     may  serve alcohol  and updates  alcohol warning  signs                                                                    
     content to  include warnings  against certain  types of                                                                    
     cancer.                                                                                                                    
                                                                                                                                
     Alaska  is  one  of  just  three  states  that  require                                                                    
     employees  to be  over the  age of  21 to  sell, serve,                                                                    
     dispense, and  deliver alcohol,  while 39  states allow                                                                    
     servers  to  be  18-20.  HB189  would  create  positive                                                                    
     change by tackling  labor shortages and a  high rate of                                                                    
     turnover in industries affected  by this bill. Now, 18-                                                                    
     to 20-year-olds  who wish to  work in  these industries                                                                    
     will have  the opportunity to move  into positions that                                                                    
     increase   their  earning   potential.  Expanding   the                                                                    
     potential  workforce  strengthens businesses,  allowing                                                                    
     them to  operate at full  capacity, leading  to greater                                                                    
     economic contributions overall.                                                                                            
                                                                                                                                
     Many establishments  already implement  robust training                                                                    
     programs   to   ensure  responsible   alcohol   service                                                                    
     practices.  These   measures,  combined   with  on-site                                                                    
     supervision,   could  effectively   ensure  responsible                                                                    
     service by young adults within these industries.                                                                           
                                                                                                                                
     With adequate training  and supervision, employees aged                                                                    
     18-20 can  responsibly and safely handle  alcohol sales                                                                    
     and  service in  a  controlled restaurant  environment.                                                                    
     This change  would benefit Alaska's  economy, alleviate                                                                    
     labor  shortages,  and   promote  fairness  within  our                                                                    
     service industry.                                                                                                          
                                                                                                                                
3:23:58 PM                                                                                                                    
                                                                                                                                
MS. HACKENMILLER gave a summary of changes in Version S                                                                         
[included in committee packet], which read as follows:                                                                          
                                                                                                                                
     Version B to Version S                                                                                                     
                                                                                                                                
     Section 1: Specifies  that the person under  21 must be                                                                    
     employed.                                                                                                                  
                                                                                                                                
     Section 2: No change.                                                                                                      
                                                                                                                                
     Section  3:  New   section.  Modifies  theater  license                                                                    
     statutes.                                                                                                                  
                                                                                                                                
     Section 4:  Prior Section 3. Specifies  that the person                                                                    
     under 21 must be employed.                                                                                                 
                                                                                                                                
     Section 5: Prior Section 4.                                                                                                
                                                                                                                                
     Section 6:  Prior Section 5. Specifies  that the person                                                                    
     under 21 must be employed.                                                                                                 
                                                                                                                                
     Section 7: Prior Section 6.                                                                                                
                                                                                                                                
     Section 8: Prior Section 7.                                                                                                
                                                                                                                                
        Section 9: New section. Updates and modifies AS                                                                         
     04.09.049(h).                                                                                                              
                                                                                                                                
     Section 10. Prior Section 8.                                                                                               
                                                                                                                                
     Section 11: New section. Repeals AS 04.09.250(d).                                                                          
                                                                                                                                
         Section 12. Prior Section 9. This updates the                                                                          
     effective date to January 1, 2025.                                                                                         
                                                                                                                                
3:25:04 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER removed his objection.                                                                                             
                                                                                                                                
REPRESENTATIVE  CARRICK object  for the  purposes of  discussion.                                                               
She  asked  Ms. Hackenmiller  to  describe  the modifications  to                                                               
section 3.                                                                                                                      
                                                                                                                                
MS. HACKENMILLER said  Section 3 would expand the  time period in                                                               
which a  theater license may  sell and serve alcohol  and removes                                                               
the intermission language.                                                                                                      
                                                                                                                                
REPRESENTATIVE CARRICK removed her objection.                                                                                   
                                                                                                                                
3:25:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  objected for  purposes of  discussion and                                                               
asked what a theater license is.                                                                                                
                                                                                                                                
MS. HACKENMILLER did not know the answer.                                                                                       
                                                                                                                                
REPRESENTATIVE  SADDLER remove  his  objection.   There being  no                                                               
further  objection,   Version  S  was  adopted   as  the  working                                                               
document.                                                                                                                       
                                                                                                                                
3:26:57 PM                                                                                                                    
                                                                                                                                
DAVID  MCCARTHY, CEO,  Northern  Hospitality  Group; Owner,  49th                                                               
State Brewing,  gave invited testimony  in strong support  of the                                                               
proposed CS  for HB 189, Version  S.  He reported  that Alaska is                                                               
one of  only three  states that have  not adopted  these changes.                                                               
He said  hospitality is a noble  career path, and the  service of                                                               
others  is  important  to  the health  and  sustainability  of  a                                                               
community.  He reported  that hospitality builds self-confidence,                                                               
the    ability   to    manage    people's   emptions,    personal                                                               
responsibility, respect, cooperation,  creative thinking, problem                                                               
solving, decision  making, and conflict management.   Further, he                                                               
said  the   hospitality  industry  shatters  the   diversity  and                                                               
inclusion numbers across  all other industries.  He  said the law                                                               
would broaden  skillsets, create flexible shifts  and hours which                                                               
creates a  higher dollar return,  and create a more  sociable and                                                               
fun  job.   Overall,  he  said  passing  Version S  would  impact                                                               
communities  through  employment  of young  adults,  which  would                                                               
develop future leaders in the community,                                                                                        
                                                                                                                                
3:33:18 PM                                                                                                                    
                                                                                                                                
DIANE THOMPSON,  President, Alaska Hospitality  Retailers; Owner,                                                               
Firetap  Restaurant, gave  invited  testimony in  support of  the                                                               
proposed CS  for HB 189, Version  S.  She reiterated  that Alaska                                                               
is one  of three  states that does  not allow  1820-year-olds  to                                                               
serve alcohol.   Furthermore, there is a  significant shortage of                                                               
workers in the  state.  She said the bill  would benefit both the                                                               
employee  and employer  and help  to keep  students in  Alaska by                                                               
giving them employment opportunities.                                                                                           
                                                                                                                                
3:35:33 PM                                                                                                                    
                                                                                                                                
CODIE COSTELLO,  President/COO, Alaska Center for  the Performing                                                               
Arts  (PAC);  General  Manager,  Broadway  Alaska,  gave  invited                                                               
testimony in  support of the proposed  CS for HB 189,  Version S.                                                               
She shared  details about  the PAC  and its  role as  an economic                                                               
engine for downtown Anchorage, highlighting  the expansion of its                                                               
new  Broadway  program.    Under  the  current  alcohol  license,                                                               
patrons  may  only consume  alcohol  in  upper-level lobbies  and                                                               
within certain  timeframes, and  there is  no alcohol  allowed in                                                               
theaters.  Version  S would provide an updated  framework for the                                                               
rules,  provide  flexibility,  and  elevate  patrons'  experience                                                               
while keeping with industry trends.                                                                                             
                                                                                                                                
3:39:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER  asked   whether  other  limitations  are                                                               
placed on younger workers aged 18-21 at the theater.                                                                            
                                                                                                                                
MS. COSTELLO said  younger workers can be employed  in the ticket                                                               
office or backstage; however, they cannot work in concessions.                                                                  
                                                                                                                                
REPRESENTATIVE  SADDLER   asked  where  young  people   would  be                                                               
employed if the bill were to pass.                                                                                              
                                                                                                                                
MS. COSTELLO  said she could  see an expansion  in front-of-house                                                               
services, the volunteer usher core, and concessions.                                                                            
                                                                                                                                
3:41:19 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER announced that Version S would be held over.