Legislature(2017 - 2018)BARNES 124
02/03/2018 10:00 AM House COMMUNITY & REGIONAL AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| HB269 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | HB 269 | TELECONFERENCED | |
HB 269-DISTILLERY LICENSEES; SERVICE ON PREMISES
10:01:25 AM
CO-CHAIR PARISH announced that the only order of business would
be HOUSE BILL NO. 269, "An Act relating to distillery licenses."
10:02:11 AM
REPRESENTATIVE CHRIS TUCK, Alaska State Legislature, introduced
HB 269, as prime sponsor. He deferred to his staff to present
the proposed legislation.
10:02:34 AM
KENDRA KLOSTER, Staff, Representative Chris Tuck, Alaska State
Legislature, presented HB 269 on behalf of Representative Tuck,
prime sponsor. She paraphrased portions of the sponsor
statement, which read in its entirety, as follows [original
punctuation provided]:
Small businesses play an important role in our society
and are truly the backbone to the economy. Equally
important is the fact that new businesses are also one
of the most important forces of innovation and
employment.
Over the past few years, entrepreneurs across Alaska
have entered into the craft distillery world. With
the help of legislation passed by the 28th Alaska
Legislature we now have seven new distilleries, making
a total of ten across the state.
In 2014, the Alaska Legislature passed House Bill 309
with overwhelming support. This bill allowed craft
distilleries to open tasting rooms, putting them on
par with breweries and wineries, to provide samples
and selling their product, with specific limitations.
This change allowed distilleries to increase their
visibility, attract more customers, compete
effectively with multi-national brands, and become a
more active participant in their respective
communities.
The Alcoholic Beverage Control Board has proposed
regulations to disallow the mixing of distilled
products with non-alcoholic beverage not produced by
the distillery. These regulations are contrary to the
original intent of the Legislature. Most people do
not consume, nor should we promote, the consumption of
straight distilled crafts.
House Bill 269 will clarify the Legislature's original
intent to allow our craft distillers to serve their
product with mixers, garnishes and other ingredients
that are non-alcoholic beverages. The proposed
regulations by the ABC Board have the potential to
impede the growth of the craft distillery industry in
Alaska and hurt our hard-working small business
owners.
It is crucial that we continue to support all our
small businesses and not create regulations that will
hamper their ability to thrive. I appreciate your
support for the quick passage of House Bill 269.
10:04:22 AM
REPRESENTATIVE TUCK indicated that when [House Bill 309] was
passed, it had limitations. Nonalcoholic mixers were not a
limitation. He noted that at the bill signing ceremony, there
had been tastings, including mixers. He opined that smoked
salmon vodka [tastes good] in a Bloody Mary but "by itself it
really doesn't do so well."
10:04:58 AM
REPRESENTATIVE RAUSCHER asked how many [distilleries] are
currently operating in Alaska.
MS. KLOSTER answered 10.
10:05:26 AM
REPRESENTATIVE DRUMMOND offered her awareness that Amalga
Distillery [in Juneau, Alaska,] produces its own tonic in house.
She asked if the Alcohol & Marijuana Control Office (AMCO)
[within Department of Commerce, Community & Economic Development
(DCCED)] decision prohibits the use of in-house produced mixers.
REPRESENTATIVE TUCK offered his understanding that a new AMCO
board decision leans toward a preference for [distilleries] to
serve only straight shots; people who want alcohol mixed with
seltzer, for example, would have to mix it themselves.
MS. KLOSTER echoed Representative Tuck's comment regarding the
mixing of one's own drink at a distillery.
REPRESENTATIVE TUCK questioned whether AMCO, whose role is to
regulate alcoholic drinks, should be regulating non-alcoholic
drinks, saying water cannot be added to scotch, for example. He
asked, "Do we really want to have people just taking straight
shots of alcohol?"
10:07:10 AM
MS. KLOSTER pointed to a binder, available in the committee
packet, comprising over 500 letters submitted to the AMCO Board
in support of distilleries. She acknowledged there were also
letters of opposition, perhaps only about 19 of them. She
highlighted the positives noted in the support letters as:
economic benefits, having an alternative, and being part of the
community. She talked about supporting upcoming businesses in
the state and said she thinks there is "room for everybody."
She characterized [distilleries] as being "a great new thing
that is coming to Alaska."
10:08:30 AM
REPRESENTATIVE SADDLER asked what the difference is between a
bar serving mixed drinks and a distillery doing the same.
REPRESENTATIVE TUCK said the following limitations have been
placed on distilleries such that they cannot have: live
entertainment, televisions, pool tables, dart boards, dancing,
electronic or other games, game tables, or other recreational
gaming opportunities where the consumption occurs. Further,
distilleries are limited in the hours during which they can be
open for tastings. In response to a follow-up question
regarding the reason for the limitations, Representative Tuck
explained that there is a three-tier system for the distribution
of alcohol, including distilleries, distributors, and retailers.
He indicated that the intent [of House Bill 309] was to not have
distilleries "acting like a bar" and instead operate more like
wineries with tasting rooms.
REPRESENTATIVE SADDLER asked the prime sponsor if his intent is
to have no further changes beyond what is in the present
proposed legislation.
REPRESENTATIVE TUCK answered that HB 269 is written as a means
of clarification, because it was never the intent to disallow
non-alcoholic beverages to be served with the alcohol produced
by the distillery. He said, "The AMCO Board seemed to change
the past three years of tradition, and so we're just trying to
set the record straight." He said a letter was sent to the AMCO
Board with co-sponsors' signatures, as well as some other
signatures; however, it did not appear that the AMCO Board even
read the letter. As a result, he said, "We're passing
legislation to clarify."
10:11:12 AM
REPRESENTATIVE RAUSCHER asked whether a distillery that gave
tastings of its vodka could also provide bourbon, for example.
REPRESENTATIVE TUCK stated that under current law distilleries
can serve only their distilled product.
10:12:27 AM
REPRESENTATIVE SADDLER asked if mixers not manufactured by the
distillery are allowed.
REPRESENTATIVE TUCK answered yes, as long as the mixers are non-
alcoholic.
REPRESENTATIVE SADDLER asked how much more value there would be
to distilleries because of being allowed to serve mixers with
their product.
REPRESENTATIVE TUCK suggested upcoming public testimony may
answer that question. He mentioned the future arrival of
tourists to Alaska and the benefit to distilleries of being able
to show the various [mixers] that can be used with their product
to create a variety of drinks.
REPRESENTATIVE SADDLER responded that it is a wonderful idea to
"leverage our Alaska mystique," and he said he supports the
extension of Alaska's brand to encourage more retail activity in
the state. He asked if it would reasonable to adjust the fee
charged to distilleries for their licenses if allowing them to
serve mixers with their product would result in an increase in
revenue.
REPRESENTATIVE TUCK answered that fees are often market driven;
there is a limit to how many distilleries can be in any one
area; and he believes that over time distilleries will increase
in value. He said seven new distilleries have opened "since
this bill was produced." He talked about a new generation that
is keen on craft breweries, wineries, and distilleries. He said
the idea of charging higher fees is one for debate and not an
issue that is being addressed under HB 269. He indicated that
the way fees are set currently allows distilleries to open and
get into the market. In response to Representative Saddler's
repetition of the question to seek the prime sponsor's opinion
on the subject, Representative Tuck stated that the restriction
placed on distilleries has only been in existence for the past
30 days, "So, I need a little bit more time to think about
that."
REPRESENTATIVE SADDLER said he would like Representative Tuck to
get back to the committee with a direct answer.
REPRESENTATIVE TUCK responded, "I'd like to give it a five-year
trail period."
REPRESENTATIVE SADDLER interjected, "At this current rate."
10:17:53 AM
CO-CHAIR PARISH open public testimony on HB 269.
10:18:48 AM
WILLIAM HOWELL testified in support of HB 269. He said he
thinks [allowing mixers in distilleries] was the obvious intent
of House Bill 309 when it passed. He opined that because the
AMCO Board demonstrated an unwillingness to "apply any sort of
good sense," additional legislation is now necessary. He said
he listened to the AMCO Board meeting of January 23, 2018, where
this measure was decided, and he "found it less than
illuminating." He said there were more than 500 comments
opposing the regulation though no public testimony was taken at
the time. He offered his view that the only people who think
[the restriction] is a good idea are members of the Alaska
Cabaret, Hotel, Restaurant and Retailer's Association, Inc.
(Alaska CHARR), "who view this as a way to squash their
competition." He quoted Darwin A. Biwer, Jr., Chairman of the
Board, Alaska CHARR, as stating, "A small group of self-serving
individuals are trying, by illegal means, to disrupt the bar
business." Mr. Howl countered, "From my perspective, a small
group of self-serving bar owners are trying, by legal means, to
disrupt the distillery business." He urged the committee to
support HB 269, because he said he cannot see a good reason to
oppose it and he does not think the AMCO Board should be
exercising its authority over non-alcoholic beverages."
10:21:12 AM
PETE HANSON, President and Chief Executive Officer (CEO), AK
CHARR, stated that AK CHARR represents 18,000 businesses in
Alaska that are licensees in the alcohol industry. Those
businesses, which include restaurants, bars, package stores,
hotels, lodges, clubs, wholesalers, and manufacturers, have
created more than 10 percent of all the jobs in Alaska. AK
CHARR has been standing up for those businesses since 1964. Mr.
Hanson said AK CHARR applauds the bill sponsor for recognizing
the issues that must be worked out regarding tasting rooms in
distilleries. He recognized there has been confusion over the
definition of a distillery's product. He reported that at its
January 23, [2018], meeting, the Alcoholic Beverage Control
Board ("ABC Board") voted 4 to 1 to implement a regulation that
would achieve a middle ground among the varied interests in the
industry while remaining true to the law created in 2014 that
first authorized tasting rooms in distilleries. He proffered it
may surprise the committee to know that AK CHARR supported that
law; AK CHARR continues to support the concepts it agreed to in
2014. He stated, "The ink on the new regulation by the ABC
Board hasn't even had a chance to dry yet, let alone be
implemented. [AK] CHARR believes that this regulation should be
implemented and should have a chance to work."
MR. HANSON said AK CHARR is supportive of SB 76. He said SB 76
would allow manufacturers to become retailers; they could buy a
license to own a bar and restaurant, for example. He said many
stakeholders worked together on SB 76 and believe it would
"solve a host of issues and lay out a direction for the future
of the industry."
MR. HANSON, in response to a question from Representative
Drummond, confirmed that SB 76 is current legislation.
10:24:51 AM
REPRESENTATIVE SADDLER asked why AK CHARR supported distilleries
in the first place if the organization might view them as
competitors.
MR. HANSON answered that AK CHARR supports growth in the
industry and protection of businesses that have been in the
industry for a length of time - some for 50-plus years. He
concluded, "We're just trying to lay out a strategy that's fair
for all the licensees in the industry, including the 11
distilleries." In response to a second question, he said the
system of manufacturer, wholesaler, and retailer was implemented
following prohibition, with union influence, and the intent was
to separate manufacturers from retailers by putting wholesalers
in the middle - the goal was to avoid vertical monopoly. The
system had a limited number of licenses to serve alcohol. He
said because of those limitations, the value of those licenses
has increased, and there are many small business owners in
Alaska, who have invested their life savings in those
businesses, and AK CHARR wants to find a system that is fair to
them and "have people (indisc.) fairly."
10:27:05 AM
BRANDON HOWARD, Co-Founder, Amalga Distillery, noted it was
House Bill 309 that passed [during the Twenty-Eighth Alaska
State Legislature] to "bring our industry up to the standard of
other distilleries around the state to help motivate and drive
tourism." He said most states allow for mixed drinks in their
tasting rooms; in 2017 that number was 33. The number has
increased, he said. He indicated that tourism has increased
because of House Bill 309. To Representative Saddler's previous
question about fees, he relayed that distilleries pay a biennial
fee of $1,000 and bars pay a biennial fee of $2,500. He offered
his understanding that SB 76 seeks to change those fees. He
said, "We often times hear about market-driven valuations, and
all start-ups require significant capital investments."
MR. HOWARD, to Mr. Hansen's comment about the ability to buy a
license to serve drinks, said the distillery is unable to
purchase a restaurant or bar permit. Further, he indicated that
the distillery is limited to serving that which it distills. He
said the current craft industry is profound and it continues to
grow. One article states that despite beer consumption
decreasing across the country, "craft [brewing] jobs are
"skyrocketing because of the incredible inefficiencies that we
have in craft production." He explained, "We create a lot more
jobs on a smaller scale of production than, say, Budweiser and
Anheuser-Busch, and we create a lot of local flavors - a lot of
local draw." Mr. Howard said another article states that Iowa,
which began allowing distilleries to have tasting rooms in 2018,
has seen growth in the industry. He concluded his testimony as
follows:
So, for the last three years, we've been able to serve
cocktails; it's grown our industry; and now we've come
to this absurd line where we're still going to be
allowed to serve drinks, but there's a contrivance and
a pettiness in ... the services - a bit of an
awkwardness - in that if I give you an ounce and half
of gin and a mixer, you can tilt that gin into the
glass, but ... if I tilt that gin into the glass for
you, I am breaking the law. I think that HB 269
addresses these issues, brings clarity, and allows us
to carry on with the intent of the original bill.
10:31:16 AM
MAURA SELENAK, Co-Founder, Amalga Distillery; President,
Distillery Guild of Alaska, said the guild supports HB 269,
which would help [distilleries] put an end to the turmoil and
uncertainty in which they found themselves in August [2017].
She said distilleries are one of Alaska's newest industries; as
manufacturers, distilleries are at a disadvantage compared to
those in other states. The cost of shipping and energy are
among the highest in the nation; labor and materials are more
expensive and often more difficult to find; and excise taxes are
the highest in the country. She said despite that, [distillery
owners] believe Alaska has something unique to offer, and they
continue to move forward and overcome obstacles unique to
production in the state.
MS. SELENAK stated that Alaskan distilleries showcase local
ingredients and flavors through their tasting rooms, such as
berries and spruce tips, and they use grains grown in the
Matanuska-Susitna (Mat-Su) Valley and Delta Junction, and malt
from Arctic Harvest, in North Pole, Alaska, that is used to make
whiskey. She said one batch of Amalga distillery's gin uses
over 8,000 pounds of Alaska-grown grain, and the distillery
sources its base spirit from an Anchorage distillery. Ms.
Selenak stated that since House Bill 309 was passed, six new
distilleries have opened and one more is on its way. She
thanked the committee for moving forward with HB 269.
10:33:09 AM
REPRESENTATIVE DRUMMOND said she had enjoyed tasting Amalga
Distillery's product. She asked the owners of the distillery to
talk about the restrictions placed on distilleries.
MR. HOWARD said a distillery's liquor license comes with
restrictions different from those of a bar. For example, a
distillery must end service by 8 p.m. and cannot have live
entertainment or games. He added, "Other entertainment has
recently been called into question, including fun." He said
there are a set number of licenses that can be issued per
population. Other limitations include: a 3-ounce limit on
volume of service and no bar stools at point of service. Mr.
Howard remarked that most of the limitations are considered
reasonable [by distillery operators]. He said currently there
is an advisory notice requiring distilleries to produce 100
percent of what it serves within their tasting rooms. He said
from its inception, Amalga Distillery has been making its own
ginger beer, tonics, and mixers; therefore, it already had the
facilities to make these things. He noted that many
distilleries in Alaska are smaller operations that did not plan
for such restrictions and do not have the infrastructure to make
their own mixers. He imparted that it is challenging to make
tonic water and Bloody Mary mix. He concluded, "So, the current
advisory notice has ... really hurt."
10:36:00 AM
MR. HOWARD, in response to Representative Drummond, said BDL
stands for "beverage dispensary license" and is considered a
bar. He said REPL stands for "restaurant eating place" and is
also called a beer and wine license. In response to another
question, he said distilleries are not allowed to open before 9
a.m. Amalga Distillery's hours are 4 p.m. to 8 p.m., except for
Saturdays when the distillery opens at 2 p.m. He said most of
the day is spent on production - brewing three to five days per
week and running the stills, with distillation running 8-16
hours.
10:37:41 AM
MR. HOWARD, in response to a question from Representative
Rauscher, said HB 269 would not affect Amalga Distillery's hours
of operation. In response to a follow-up question, he said the
draw of the distillery may be its place in the increasingly
popular field of craft brewing. Further, he suggested that
people take pride in that which is made in their own community.
MS. SELENAK added that the Amalga Distillery opens at 1 p.m.
during the summer as a response to increased tourism during that
time. Other distilleries around the state estimate that up to
80 percent of their traffic is from tourists who want to
experience flavors they can taste only in Alaska.
10:40:15 AM
MR. HOWARD responded to questions from Representative Saddler.
He said the ratio of locals to tourists in the summer months
varies depending on the time day: earlier in the day [when
there are more tourists in town off the cruise ships] 80-90
percent of the distillery's traffic is tourism; later in the
evening the ratio of tourist to locals is 60:40 or 50:50. He
said when people travel, they like to go where the locals go, so
Amalga Distillery built a space that locals love. He indicated
that the business license has built-in features "to prohibit
competition and that repeat customer." Notwithstanding that, he
said, Amalga Distillery does have regulars. He said the
distillery wants to be involved in the community and has created
a hospitable space to represent its brand. He said the
distillery inspires people with new ways to use its product. He
confirmed that the ability to showcase the distillery's product
with mixes can help expand its customer base, and he reiterated
that Amalga Distillery makes its own mixes.
MR. HOWARD, continuing response to Representative Saddler's
questions, said Amalga Distillery has been open seven months
and, as the newest distillery in the state, has seen the ratio
of wholesale versus retail sales shift. Initially 100 percent
of sales comprised bottles and cocktails sold over the counter;
in December the majority of product was shipped out of Juneau to
Anchorage and other Alaska communities. The distillery is
ambitiously seeking export outside the state and country, so
while currently retail is the higher focus, Mr. Howard predicted
that the export number [would increase]. That said, he noted
that because of the number of tourists supporting the
distillery, the export number would not likely ever reach over
80 percent.
10:46:32 AM
MR. HOWARD, in response to a question from Representative
Lincoln, said the current version of HB 269 restricts mixers
with alcohol in them, such as vermouth and triple sec. He said,
"If I had a dollar for every man that has come in off the cruise
ship and slapped our bar and said, 'Pour me a martini with your
gin,' I ... would actually have gotten a bit of a paycheck by
now." He continued:
Would it be helpful? Yes. Do some states allow for
it? Yes. Is Alaska there? For right now, I think
that HB 269 addresses our issues in a really
responsible way.
10:47:56 AM
MR. HOWARD, in response to a question from Representative
Saddler as to whether being allowed to have barstools would
affect the distillery, emphasized that being allowed to have
seats at the bar and provide entertainment would be highly
beneficial for Amalga Distillery. He related that two elderly
women had walked all the way from the cruise ship to the
distillery and pulled seats up to the bar to rest, and he had to
tell them they could not sit at the bar. In another instance,
he had to tell two gentleman that playing cribbage in the
distillery is illegal. Mr. Howard said there has been "an
unfriendly business environment" wherein people have reported
the distillery, which has had a notice of violation for a
musical performance it did not solicit. He said the space
itself seems to invite these activities and "we're all kind of
fearing Folk Fest right now," because Juneau has musicians and
artists who find opportunities for expression. He said there
are some "unfortunate repercussions for the way regulations are
built."
REPRESENTATIVE SADDLER asked if Mr. Howard sees himself coming
before the legislature again in two years asking for barstools
and music or if he would be content with the mixers, as under HB
269.
MR. HOWARD named breweries and cider houses around the state -
HooDoo Brewing Company in Fairbanks, Baranof Island Brewing
Company in Sitka, Devil's Club Brewing Company in Juneau, and
Double Shovel Cider Company in Anchorage - and remarked there is
a new group of passionate entrepreneurs who want more than to
make a dollar; they want to collaborate with local artists and
businesses. He said, "I think that it's something that you
could see in the future. Right now, of course, we just want to
go back to a sound and stable regulatory environment so that we
can focus on our businesses."
10:53:42 AM
JEDEDIAH BLUM-EVITTS, Production Technician, Port Chilkoot
Distillery, concurred with the testimony from the founders of
the Amalga Distillery. He said tourism is a major factor for
Fort Chilkoot Distillery; tourists make the operation of the
distillery possible. In response to Representative Saddler,
regarding when a manufacturer crosses over to being a bar, Mr.
Blum-Evitts reiterated that his role in the distillery is as
production technician. Nevertheless, he said the business model
was created on the idea of serving cocktails to maintain a
tasting room that represents the products not to have
entertainment. He stated, "Following that model, I don't see
why they would be looking to add on those extra things."
10:56:10 AM
CAITIE KIRBY, Tasting Room Manager, Port Chilkoot Distillery,
stated that most of Port Chilkoot Distillery's income comes from
summer sales. She related that she has been mixing cocktails
and "not-cocktails" for the past year and a half. She echoed
Mr. Blum-Evitts' remark that most of the business for the
distillery comes from the cruise ship tourists, as well as
people from Canada. She said people who have tried the
distillery's gin somewhere else are excited to come to the
distillery to try their favorite drink made with the
distillery's gin, and she said having to tell them no is the
worst part of her day. She said the distillery is a community
gathering spot in the winter for regulars who don't want to hang
out in a bar. She said the distillery would not be open in the
winter if it could not "make those drinks for those regulars."
Ms. Kirby noted this is her only job and "it's a nice thing to
be part of."
10:57:57 AM
REPRESENTATIVE DRUMMOND relayed she had visited the Port
Chilkoot Distillery in June of 2017, and she said the tasting
room there is significantly smaller than that of Amalga
Distillery. She asked what Port Chilkoot Distillery's hours of
operation are.
MS. KIRBY answered winter hours are Wednesday through Saturday,
4 p.m. to 8 p.m., and summer hours are Monday through Saturday,
2 p.m. to 8 p.m. In response to Representative Rauscher, she
said the distillery opened in 2013; the tasting room opened
October 2014. Expanded hours for tourists begin mid-May,
although there are some heliskiers that arrive late March. Beer
Fest in late May brings people in. The season goes to mid-
September. On a cruise ship day, there can be between 60-100
people at the distillery, which is a lot for the tiny space.
11:01:13 AM
MS. KIRBY, in response to a question from Representative Saddler
as to what drew her to the industry, said she moved to Alaska
with no job or plan, discovered the distillery, and now works
with great people and has "developed a certain love for the
industry." She added that people come in happy and leave
happier.
MR. BLUM-EVITTS, to the same question, said he moved to Haines
before the distillery opened and got to know its founders, now
owners. He said he is "very craft and hands-on inclined" and
found the process interesting, which led to his job there. In
response to a follow-up question about the financial aspect of
the business, he offered his understanding that the Port
Chilkoot Distillery has just reached the point it will be able
to pay off the debt invested to start the business.
11:03:24 AM
MR. BLUM-EVITTS, in response to Representative Lincoln, said the
distillery sources its ingredients from Canada and Washington
and tries to source locally as much as possible. The distillery
makes its own mixers from local herbs and fruits.
11:03:58 AM
MS. KIRBY, in response to Representative Drummond, said she
neither has had to cut anyone off nor has seen anyone
intoxicated during her work at the distillery.
11:05:03 AM
ROBERT KLIEN, Chief Executive Officer (CEO), Anchorage
Distillery; Chair, Alcohol Beverage Control Board (ABC Board),
noted that the 4-1 vote mentioned previously by Mr. Hanson was
actually 3-1 because, Mr. Cline said, he must recuse himself.
He continued:
On advice of assistant attorney general, the ABC
[Board] has seen that the original law that permitted
tasting rooms did not specifically say cocktails. And
despite the fact that Representative Tuck described
that the original intent was for cocktails, it didn't
appear in the law. And so, they have been just going
through fits and starts and finally came out with a
regulation, which I don't agree with, ... which said,
"Okay, you can present nonalcoholic mixers, but you
are restricted to just presenting a shot of ... up to
three ounces of your product." I am so grateful to
Representative Tuck to come through with this new
legislation so that we can finally straighten this
out.
MR. KLIEN recollected the bill sponsor's staff had shown a 545-
page stack of public testimony of which 96 percent wrote in
support of distilleries. He expressed appreciation to the
committee for considering HB 269.
11:08:12 AM
MR. KLIEN, in response to Representative Rauscher, said there
are distilleries that make more than one product. He relayed
that the Anchorage Distillery makes whiskey, vodka, and gin. He
offered his understanding that most distilleries concentrate on
one or two items, but there is nothing in the licensing that
would restrict them from distilling any kind of spirit. He said
he would not speculate what that number would be.
11:10:10 AM
REPRESENTATIVE SADDLER asked Mr. Klien if he views HB 269 as the
end of a process or whether it is a step in a continuing process
of expanding allowable activities under the distillery license.
MR. KLIEN answered that HB 269 is specific in that it would
define cocktails. He said there are other issues being reviewed
by the AMCO staff, such as an attempt to define entertainment,
and there may be additional legislation brought forward in that
regard. In terms of the scope of distilleries, he said that
"most of us are pretty happy with it." He continued:
And I think that your attention will be turned to the
industry when you see a House version of SB 76 come
before you, because that's the one that really opens
up opportunities to distilleries who want to grow
well beyond just a tasting room; it actually would
allow them to acquire beverage dispensary licenses
[and] open a bar should they choose to.
11:12:00 AM
REPRESENTATIVE SADDLER determined that Mr. Klien was saying that
"what defines the limits of a distillery license are being
pursued on multiple paths": HB 269 addresses a short-term goal
of defining what a cocktail is, while "the larger issue is still
active in other legislation. He asked Mr. Cline to confirm if
he is saying that "this is not going to be the end of this
issue."
MR. KLIEN answered that's correct. In response to follow-up
questions, he said Anchorage Distillery can provide its
customers with small sample tastings; three to five products may
be sampled, especially when tourists visit. He named some
varieties. He said the samples are "miniscule" - about a
quarter ounce. He specified that HB 269 addresses the
permission to mix the cocktails. Currently customers can have
cocktails but [the spirit(s) and the mixer(s)] must be presented
separately. He said there are no restrictions on a customer
bringing in a non-alcoholic mixer; however, he commented that
what a customer brings in probably would not be as good as that
which the distillery makes.
11:16:03 AM
MR. KLIEN, in response to Chair Parish, explained the reason for
expediting HB 269 is because the ABC Board's 3 to 1 vote on its
January 23 meeting came up with a regulation which would require
distilleries to serve mixers separate from spirits; if HB 269
was passed, the regulation would not be signed.
11:17:23 AM
ROBYN DAVIES, Arctic Harvest Distillery, stated that the
distillery has been open for less than a year. She said it is
expensive to operate a distillery in Alaska. She said the
public needs to be educated in what it takes to craft a spirit
and "why it costs more than imported beer." She said the
distillery makes malt whiskey, is starting production of vodka,
and has plans to make other spirits. She said the distillery is
located on a farm 22 miles from Fairbanks, and most people would
not drive that far just for a shot of whiskey; therefore, the
distillery offers tours of its operations along with the ability
for patrons to taste a variety of cocktails made with its
products "to highlight the unique taste" of the distillery's
spirits. She said customers return when the distillery
advertises a new product or cocktail or emphasizes "an
agricultural activity." She said the Arctic Harvest Distillery
would appreciate the quick passage of HB 269 to clear up the
confusion over whether staff or a customer mixes a cocktail.
11:19:57 AM
MS. DAVIES, in response to Representative Rauscher, said the
distillery grows and malts its own grain, makes its own rhubarb
syrup, and produces its own honey. It buys any mixer it cannot
make itself, such as Coca-Cola. She said the distillery uses
barley and wheat.
11:22:45 AM
ROB BORLAND, Ursa Major Distilling, imparted that Ursa Major
Distilling is the smallest distillery in Alaska and one of the
oldest. Having a tasting room has allowed the distillery to
keep its doors open. Some of the product is sold in the liquor
stores but the bulk is sold on premise. He compared the
distillery to a small coffee roasting company that makes a local
product in a communal gathering place. He said the spirits are,
in most cases, meant to be served as a cocktail. He said Ursa
Major Distilling built a community-minded business that raises
tax revenue for the state and tightens up the community. He
stated support for HB 269.
11:24:56 AM
MR. BORLAND, in response to Representative Saddler, indicated
that the distillery doesn't do a lot of free sampling - usually
only for tourists and if a new product comes out to be sampled.
He said the retail and wholesale usually is about 50/50. In
terms of whether the distillery would like to extend to allowing
barstools and entertainment, he said he does not want to work in
a bar; he likes being able to close at 8 p.m. and not having to
deal with drunk people.
11:27:36 AM
TOIVO LUICK, Owner, Hoarfrost Distilling, stated that the
distillery opened its doors just over a year ago and makes only
vodka. He said thus far production outstrips distribution. He
emphasized that no distillery "pops up"; it takes a full year to
get the required licensing before being able to produce alcohol.
He said the tasting room is an important part of the business
plan because it allows the distillery to showcase its product to
potential customers and helps offset the cost of production. He
said Hoarfrost does 20-30 percent tourist business and "a fairly
decent-sized wholesale business." When the distillery started
out, it was with the understanding that it would be allowed to
serve up to three ounces of its vodka in "cocktail format";
however, that was changed recently by the ABC Board. He said
that change was "a long, slow, painful process with lots of
meetings and public testimony ...." Mr. Luick said Hoarfrost
Distilling does not want to be in contention with bars, but
there is a certain amount of competition that is inherent to the
business. He reemphasized that the tasting room is a critical
part of Hoarfrost Distilling's business plan.
11:31:34 AM
MR. LUICK, in response to Representative Saddler, said the
tasters poured at the distillery range from one-eighth to one-
quarter ounce. Tasting is encouraged because the distillery is
proud of its product and teaching what makes a good vodka. He
said the distillery probably does slightly less than 50 percent
in wholesale; stock is being increased for the summer right now;
and the distillery obtained a wholesale distributor in October
[2017]. He said he hopes he would not be back in the future to
request further legislation asking permission to have bar stools
and entertainment. He said he likes the way the distillery's
tasting room operates, with no drunk or aggressive patrons. He
said if the ABC Board were to interpret statute differently, he
said he would reserve his right to "continue the way we are."
11:35:00 AM
JOSEPH W. GELDHOT offered that his background is as an attorney
at law, but said he does not represent any of the distilleries
present to testify. He said he has been a lawyer for over 35
years, including over 11 years as an assistant attorney general
when he wrote legislation and prepared regulations. Mr. Geldhot
stated that he is "a reluctant supporter of the measure before
you." He said by allowing distilleries to operate in Alaska,
the legislature opened opportunities for enterprise, and young
people have borrowed money and started businesses. He indicated
that "a goofball decision" in the Office of the Attorney General
along with decisions made by a "rogue" and "hyperactive"
executive director resulted in regulations that make no sense.
He said the American rule is that if something is not prohibited
in statute, then it is allowed; therefore, he said he does not
know how some assistant attorney general decided that since
cocktails are not defined they somehow are prohibited. He
opined that the legislature should pass [HB 269] and should be
asking serious questions of the Department of Law.
11:38:32 AM
REPRESENTATIVE SADDLER remarked that Mr. Geldhot had used the
words "goofball," "rogue," and "hyperactive" in describing
people and decisions, and he invited Mr. Geldhot to restate his
comments in a more respectful manner.
11:39:05 AM
MR. GELDHOT replied that he would have used other language if he
were in a locker room but chose "goofball" because he thinks
[the regulations] are silly and the necessary response to them
by the legislature a waste of the legislature's time.
11:40:21 AM
REPRESENTATIVE SADDLER asked Mr. Geldhot if he would like to
take the opportunity to apologize to the person to whom he was
referring.
CO-CHAIR PARISH asked that the discussion remain germane to the
topic before the committee.
REPRESENTATIVE SADDLER stated that though people may disagree
with the opinions of others, they should not disparage others.
He said, "I want to give Mr. Geldhot the opportunity to
apologize for his intemperate remarks."
CO-CHAIR PARISH stated, "As members of the legislature, we are
bound by a very high code of conduct; members of the public are
bound by ... their own discretion."
MR. GELDHOT said he has been involved with the legislative
process long enough that he remembers when people were in fist
fights in the capitol. He said he does not think what he said
violated decorum. He said if a comment he makes is offensive to
the individual, he would expect that individual to call him and
discuss it, but he does not need another legislator to "broker
an apology."
11:42:25 AM
KIMBERLY METCALFE testified in opposition to HB 269 as currently
written. She said she is not against distilleries in Alaska and
thinks new manufacturing businesses in Alaska are a good thing.
She noted that Amalga Distillery in Juneau is doing good
business and attracts a young crowd. She explained that the
issue is not the distillery business, per se, but the way in
which the state is going about licensing and regulating
distilleries in general. She stated her concern is that
allowing distilleries to serve cocktails, whether mixed by a
bartender or the customer, is allowing distilleries to act as a
bar without a bar license. Ms. Metcalfe said bar licenses in
Juneau cost about $250,000 and are very limited in number. A
distillery, on the other hand, can purchase a distillery license
for a biennial fee of $1,500 - a small price to pay for that
kind of license - and the distillery is required to distill
alcohol on the premises.
MS. METCALFE pointed out that as stated by previous testifiers,
Amalga Distillery buys alcohol in bulk from Anchorage and [Port
Chilkoot Distillery] buys alcohol from Canada and other places.
She said the distilleries then flavor the alcohol with berries
and herbs and run it through their stills, so it is considered
stilled on site; however, she said the distilleries are not
actually making the alcohol on the premises. She stated, "This
process gives a distillery a huge advantage over bar owners who
must buy distilled products from distributors and pay high
prices for their products, which are heavily regulated both
nationally and by the state." Ms. Metcalfe also noted that
distilleries sell samples, also known as cocktails, for very low
prices; the Amalga Distillery sells drinks for $5 to $6.
Further, the Amalga Distillery has a comfortable seating area
even though it is not supposed to have bar stools. She said,
"To me, that's skirting the law. The law says no barstools and
that's what it should be."
MS. METCALFE stated that the number of distillery licenses, like
bar licenses, is based on population. There are approximately
30,000 people in Juneau, and based on one license for every
3,000, there could be 10 distillery licenses in Juneau. Based
on Alaska's population of 738,432, as of 2015, that could
translate in to 246 distillery licenses statewide. She
continued as follows:
If those distilleries all operated as tasting rooms
that served cocktails, that means we would have 10
more bars in Juneau, and between Anchorage and Mat-Su,
there could be another 133 distillery licensees who
are paying a fraction of the price of a bar license.
MS. METCALFE said she would like to see the law amended so that
distilleries make the spirits they sell on site. She opined
there needs to be a prohibition against importing the alcohol,
flavoring it, distilling, then calling it a product distilled on
site. She stated that the licensing of new distilleries should
also be strictly limited. She said the fact that Alaska has a
tremendous problem with alcohol abuse should make the
legislature hesitant to support "an explosion of new licensing
in this state of distillery businesses that are acting as bars
without a bar license." She said distilleries selling "cheap
product at happy hour prices" when happy hours are not allowed
in Alaska and ignoring the barstool law puts established bars at
a severe disadvantage. She stated, "A tasting room should be
just that; it should be a place where customers can taste the
product as it is. To allow craft cocktails is not what a
tasting room should be doing."
MS. METCALFE said the legislature should ensure there is
enforcement of the three-ounce limit. She asked the committee
to consider how unfair to established businesses it is to allow
a proliferation of distilleries that are de facto bars without
strict regulations in place. She reiterated her concern about
increasing the number of alcohol establishments in a state with
an alcohol problem.
11:47:46 AM
MS. METCALFE, in response to Representative Drummond, confirmed
she opposes HB 269, and she recapped some of her main points, as
previously stated. In response to Chair Parish, she highlighted
her main concerns, as previously stated.
11:49:55 AM
JIN SCHOLL talked about the certain ingredients and steps that
must be done to make an Old Fashioned the correct way. He then
pointed out that one of the ingredients was made by a young
woman, who had a part-time job because of the use of that
ingredient. He said, "That's an indirect job." He said
distilleries are a basic industry because they create a spirit;
they have a better economic multiplier because they create new
jobs, and that young woman is an example of that. He said he is
sure it is a big deal to have a part-time job in Haines, Alaska.
Mr. Scholl said he respectfully disagrees with Ms. Metcalf,
because bars are not basic industries; they can serve as many
drinks as they want. A distillery is a basic industry, he
added, because it can only serve two drinks or three ounces. He
concluded, "That's a big difference."
11:53:39 AM
BEN WILLIAMS offered his understanding that [the distillery]
industry is regulated by the density of the population, the
hours of operation, and the amount of liquor it can serve. He
questioned AMCO's decision regarding nonalcoholic [mixers]. He
said, "Since you can only serve three ounces of liquor that's
produced on site, I don't really see any other reason other than
if you're going to bring in liquor from off-site to create those
three ounces, that would be a problem, but otherwise, what does
it matter what it's mixed with?" He said the requirement for
distilleries to close by 8 p.m. means there is not a lot of
competition [with bars]. He said he and his spouse don't view
[a distillery] as a bar. He said a distillery is a fun place to
take out-of-towners when they come for a visit. He mentioned
Amalga Distillery and Port Chilkoot Distillery and said he is
more familiar with the latter. He stated support of HB 269 and
said he thinks "it's kind of ridiculous where this has all
gone." He added, "Mixing something with some booze does not
inherently change the character of the booze."
11:56:15 AM
JANILYN HEGER, Co-Owner, Skagway Spirits Distillery, stated that
there is a lot of misinformation regarding license fees. She
said the state fee for a manufacturer's license is $1,000
biennially; the cost for a BDL is $2,500. She said
[distilleries] pay less than bars because they do not operate
the same hours, offer far fewer services, and "don't get to have
any fun." She indicated that an amount of $250,000-$300,000 had
been mentioned in relation to licensing, and she emphasized that
reflects market value - not the fee. She mentioned a survey
which reflects that distilleries spend between $200,000 and
$500,000 just to start their businesses. To the comment that
young people are in the industry, she related that she and her
husband are above 60 years in age and have spent their life
savings on an industry that excites them. Their son is their
distiller. She said she has made a commitment to the community
and to the state, which benefits from the taxes from the
industry.
MS. HEGER offered her understanding that Ms. Metcalfe had said
that "bars have all these advantages," and she said she does not
see it that way. She said distilling is expensive. She
acknowledged that some distilleries do import grain neutral
spirits to distill; however, she emphasized distilleries start
out, as an industry, with an economic disadvantage. She said
"redistilling" is sanctioned by the federal government and is "a
great way to start up a business and then add to it."
MS. HEGER said Skagway Spirits Distillery uses botanicals,
including rhubarb, to make juices, tonics, and bitters, which is
labor intensive but a great way to show off the distillery's
product.
12:01:59 PM
MS. HEGER responded to questions from Representative Saddler.
She said Skagway Spirits Distillery sells 60 percent in retail
and 40 percent wholesale. She said the distillery did not
acquire its license until June 23, [2017], so she expects the
numbers will improve with a full year in 2018. She said the
only issue she would like the legislature to revisit is [the
ability] to offer entertainment as a community event or
fundraiser. She concluded, "Having to turn anybody away to come
in for anything other than the tasting is not really what we
hope to be in terms of being supportive of our community."
12:03:12 PM
LARRY HACKENMILLER noted that although he is associated with
Interior Cabaret, Hotel, Restaurant, and Retailers Association
(ICHAR), he is testing on behalf of himself in opposition to HB
269. He said when House Bill 309 was passed, the term "de
facto" was well-used in discussions related to the issue. He
said the sponsor [of House Bill 309] had made it clear that "it
was distilled spirits only that were for sale." He said the
intent was to make distilleries equal to breweries and wineries,
which can sell certain ounces of their product to the public for
on-premise consumption. Prior to that legislation, he said,
distilleries could sell their product only to licensees, such as
bars, package stores, and wholesalers - they were not allowed to
have people on the premises. The five distilleries that existed
at that time did not have tasting rooms. Mr. Hackenmiller said
once distilleries were granted tasting rooms, one of them
immediately began selling vodka with vermouth in their martinis,
even though he said they knew it was illegal. Once told, the
distillery stopped. He said events such as yoga classes and
wedding receptions are not allowed. A distillery is a
manufacturer that can sample up to three ounces of its product.
Mr. Hackenmiller said once distilleries start mixing drinks,
whether by staff or by a customer, they are de facto a bar.
12:06:53 PM
TANIA CLUCAS testified that she supports the process of HB 269.
She said bars have a clientele different from that of
distilleries. She said she likes the ability to sample
different alcohols in tasting rooms. She said if she were to
order a Bee's Knees or an Old Fashioned at most bars, she would
be given a hard time for ordering a drink like that, whereas
distillery tasting room staff are "interested in sharing the
variety of their offerings and how it can be done." She
indicated there is no competition between [bars and distillery
tasting rooms], and she opined that [distilleries] provide
economic diversity in a state where manufacturing is not always
simple. Ms. Clucas stated, "Putting some sort of barrier to the
success of this licensed industry is just really small-minded
and petty ..., and you should be bigger-minded and think about
the greater success of our state and our community."
12:10:41 PM
CORINNE CONLON recalled that Representative Rauscher had asked
why the Amalga Distillery is so popular, and she proffered it is
because the distillery offers something unique in flavor and
local sourcing. She mentioned [Mr. Howard's] use of the word
"contrivance" [in relation to disallowing tasting room employees
to add a mixer but allowing clientele to do so], and she said
that is a key word. She said it seems that regulation related
to House Bill 309 "is meant to take away the popularity of
distilleries when we should be celebrating that we have
opportunities for businesses to open around the state." She
mentioned limitation on distilleries, such as hours and limited
servings, and she sympathized with how difficult it would be,
for example, to keep people [who want to come in and have a
music jam] out of the distillery during Folk Fest. She said HB
269 provides clarity as to what distilleries can do to mix
drinks; therefore, she stated support of the proposed
legislation.
12:13:40 PM
HEATHER SHADE, Co-Owner, Port Chilkoot Distillery, testified
that she and business partner Sean Copeland built their
distillery business based on the provisions of House Bill 309,
and it was clear that a tasting room was needed to promote their
product, because being solely a production facility in rural
Alaska was not an option for growth. She said now the
distillery is a draw for tourists and a source of jobs for the
community. Passage of HB 269 would allow the distillery to give
tourists locally made spirits served as the producers intended
them to be tasted, which she said means with mixers. She
stated, "With that type of tasting experience, we are then able
to offer tours, merchandise, and we can host a pretty endless
stream of travel- and food-writers that come to Haines, that not
only allow us to promote Alaska new products to the world, but
allow us to promote our community as a tourist destination, and
we believe [that] has been the main path to our success." Ms.
Shade said without HB 269, she fears that the popularity of
distilleries will wane, and owners will be forced to "set up
shop in states with more accommodating laws." She said she
would like to continue making a product she loves in Alaska.
Ms. Shade said Port Chilkoot Distillery makes five products
using separate production techniques, including the milling of
grain by hand and growing herbs on site. She reported that 75
percent of the distillery's product is sold wholesale. She said
she would like to continue growing the business.
12:17:25 PM
MS SHADE, in response to Representative Lincoln, said the
distillery makes vodka, gin, an absinth product, and three
varieties of whiskey. She explained that about half of the
products made by the distillery are made by receiving grain,
which is cooked in water, to which yeast is added, then
fermented, stilled twice, and aged for two years in a barrel.
The gin and absinth products are made in the traditional world-
wide method, which is to obtain neutral grain spirit from
another facility that has a larger capacity. She explained that
neutral grain spirit is alcohol that has been distilled to a
certain point but is still an unfinished product. She said this
method of procurement is regulated by the U.S. Tax and Trade
Bureau. The distillery then makes a product from the neutral
grain spirit; one way is by soaking or distilling certain herbs
in it one to two times, adding more herbs, filtering, and
bottling. She emphasized that it is far more expensive to
produce a spirit in this manner than it is for a bar to purchase
spirits from a wholesaler/distributor.
12:20:16 PM
MS. SHADE responded to questions from Representative Saddler.
She said the distillery pays a 5.5 percent sales tax on anything
sold in its tasting room, including samples, merchandise, and
tours. She said the Borough of Haines has discussed adding an
alcohol retail tax but has not done so to date. She imparted
that in addition to the [$1,000] license, the distillery pays an
annual bottling plant license to the Department of Environmental
Conservation, although she said she could not recall the amount.
She said given the restrictions - limited hours and actual
product that can be sold to each visitor to the distillery - "it
seems proportional"; however, she said she does not know the
business plans of [bars], which can sell unlimited volume and
variety of alcohol.
REPRESENTATIVE SADDLER requested that information be sent to the
committee.
12:23:34 PM
DEB HICKOK, President/Chief Executive Officer (CEO), announced
that her testimony would put distilleries "in a tourism
perspective." She said the Explore Fairbanks Board supported
House Bill 309, and the board authorized her letter of 12/13/17,
supporting clarification of House Bill 309. She said in general
the board advocated for a common-sense approach to allow
distilleries to serve their onsite manufactured spirits with
nonalcoholic mixers and garnishments. She noted she had just
mailed the letter to the committee, and in the letter is an
article from the October 2015 issue of Alaska Airline's Beyond
Magazine, titled: "Pioneering Spirits: Alaska Breweries and
Distilleries Are Crafting Excellence." She said the article
features Silver Gulch Brewing and Bottling Company, Ursa Major
Distilling, and others around the state. She emphasized how
valuable the appeal of locally grown products is to visitors.
She said Explore Fairbanks' 2018 Visitors' Guide gives "a shout
out to local cuisines, spirits, and markets," and mentions local
distilleries and breweries. She added, "So, it's not a driver
of tourism, but it certainly adds a dimension of things to do
for visitors who ... very eagerly anticipate experiencing locals
and local cuisine, and certainly the distilleries give that
opportunity."
12:26:11 PM
MS. HICKOK answered questions from Representative Saddler. She
said she doesn't have statistics regarding the ratio of
wholesale to retail. She said the board has not reviewed HB 269
specifically; the letter she sent simply points to the need for
clarification of House Bill 309. She indicated that [HB 269]
seems to be a common-sense approach to allowing distilleries to
mix nonalcoholic ingredients and garnishes to their products.
12:27:42 PM
GARY BLACK testified in support of HB 269. He said his
professional career as features editor for the Fairbanks Daily
News Miner regularly puts him in touch with distilleries and
breweries. He clarified that he is testifying on his own behalf
and not on the behalf of the news agency. Mr. Black said he
sees the cultural, economic, and social impact of distilleries
in Interior Alaska. He said when distilleries were doing "First
Fridays" artists would display their works, guests would come in
for cocktails, and the artists would earn money, which in turn
would go back to the community. He said distilleries turned
into cultural hubs and social centers; at one time there were
yoga "events"; communities were brought together. He said,
"It's a boon for the community." He encouraged the committee to
"take a forward-looking approach in growing the economics of our
local distilleries in Interior Alaska."
12:29:37 PM
ZACH ANDERSON testified in support of HB 269. He said he is
brewer at the Alaskan Brewing Company and supports "a craft
movement, not necessarily distilleries." He said he does not
understand why a [customer] would be allowed to mix a drink but
a trained employee would not. He said he grew up in Oregon,
where the craft movement is the hub for culture. He said he has
observed that Amalga Distillery not only has a great product but
also provides a place for people to come and interact. He said,
"The ambiance and what goes on there is just more than ...
liquor." He referred to the repeated question from
Representative Saddler as to whether changes would be needed in
the future, and he said he thinks "that's pretty evident." He
said bars are much different from craft locations; the latter
are not there just to make money but also to promote a skill set
that they've acquired, which in turn promotes education and less
drinking. He said, "We've had an individual already speak of a
connection between craft and bars. Bars are much different, and
... I think this reflects a level of ignorance that isn't needed
to be said in these types of meetings." He reiterated his
support for HB 269.
12:32:19 PM
JESSIE PALOMINO observed that most people who had testified in
opposition to HB 269 have "some kind of vested interest in
ensuring that their ... profits are protected to ... the maximum
level." He said when [Amalga Distillery] opened, "it was a
breath of fresh air." People could go for a cocktail, learn
about the product being made, and discover ways to serve it. He
said the distillery is an economic boon to Juneau. He offered
his understanding that bars "offer very little" and, rather than
providing space for local collaborations and artists to display
their work, are there to "take people's hard-earned wages" and
"support the alcohol problem that is so prevalent here in
Alaska." By comparison, he said a brewery offers a different
experience of "being able to go in and have a cocktail in a
brightly lit room with educated people that are interested in
talking to you and are very eager to be a part of the
community."
12:34:32 PM
PAUL GUARDINIER testified in support of HB 269, which he dubbed,
"The People v. CHARR." He explained that the bill is not about
protection of public safety but rather about protection of the
market value of bar licenses and elimination of competition. He
said addressing public safety would mean "limiting some of the
things that bars do" by [adjusting] closing hours, limiting the
number of drinks served, and not "pushing people out into the
streets" who are inebriated. Mr. Guardinier said he has been
listening to recent ABC Board meetings and is astonished by an
overall "excessive drive toward regulation," which he said is
counter to everything he, as a 40-year resident, thinks "we want
to go." He offered an example. He emphasized the need for
Alaska to grow its economy and remarked that he is excited to
see young people, who leave the state for school, return and
start businesses.
MR. GUARDINIER, regarding the idea of an industry exploding,
said he researched the history of distilleries and found that
Ireland was the first commercial producer of distilled products.
He noted that Ms. Metcalfe said there is a possibility of 100
distilleries in Alaska, based on population, but pointed out
that there are only 16 distilleries in Ireland, which has been
distilling since 1625. He opined that the ABC Board is busy
covering marijuana and does not need to be regulating tonic
water. He expressed hope that the committee could move forward
on HB 269.
12:39:08 PM
CO-CHAIR PARISH, after ascertaining that no one else wished to
testify, closed public testimony on HB 269.
CO-CHAIR PARISH noted that the committee would look forward to
invited testimony from a representative of the ABC Control Board
at a future hearing on the proposed legislation.
[HB 269 was held over.]