02/08/2018 08:00 AM House COMMUNITY & REGIONAL AFFAIRS

        HB 269-DISTILLERY LICENSEES; SERVICE ON PREMISES                                                                    
                                                                                                                                
8:28:13 AM                                                                                                                    
                                                                                                                                
CO-CHAIR PARISH announced  that the next order  of business would                                                               
be HOUSE BILL NO. 269, "An Act relating to distillery licenses."                                                                
                                                                                                                                
8:29:02 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DRUMMOND moved  to report HB 269  out of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.                                                                                                                          
                                                                                                                                
8:29:09 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER objected.                                                                                                
                                                                                                                                
8:29:22 AM                                                                                                                    
                                                                                                                                
CO-CHAIR PARISH  said HB 269  would address what some  consider a                                                               
premature  or  unfair ruling  that  could  adversely affect  many                                                               
businesses  in Alaska  operating under  good faith.   He  said he                                                               
does  not  think HB  269  is  "the final  word"  but  is "a  fix"                                                               
urgently needed.  He stated support for HB 269.                                                                                 
                                                                                                                                
8:30:12 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  said after hearing all  the testimony [on                                                               
1/25/18], he is still concerned  about "the blurring of the lines                                                               
... between  what is a bar  - a beverage dispenser  licensee that                                                               
can serve mixed  drinks - and a distillery -  a manufacturer, who                                                               
has a side  business of providing tastes of liquor,  but which is                                                               
going  to expand  that to  provide mixed  drinks."   He expressed                                                               
concern about  a trend in  the future wherein the  same arguments                                                               
that  would  allow  the proposed  legislation  would  be  equally                                                               
compelling  to allow  distilleries  to  provide entertainment  or                                                               
"other accoutrements  and accessories" that might  make them more                                                               
like a bar.                                                                                                                     
                                                                                                                                
8:31:00 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TALERICO said he shares  the same concerns and has                                                               
heard from  others with  the same  concerns.   He said  he thinks                                                               
there  is a  gray  area, and  he expects  the  next committee  of                                                               
referral will work  on the issue.  He opined  that [HB 269] would                                                               
be appropriately  moving forward  to a committee  of jurisdiction                                                               
in which he thinks it belongs.                                                                                                  
                                                                                                                                
8:31:54 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DRUMMOND said  because  the  selection of  liquor                                                               
offered in distilleries  is limited, as well as  mixers, she does                                                               
not  have  a  problem  with  HB 269.    She  noted  further  that                                                               
distilleries' hours of operation  are limited and "the facilities                                                               
are limited  to what they  can entertain."   She said  she thinks                                                               
the  committee has  heard "plenty  of significant  testimony from                                                               
those  who  have made  significant  investments  in building  and                                                               
operating  and  opening  distilleries  and  contributing  to  the                                                               
diversity of  manufacturing in Alaska."   She stated  support for                                                               
HB 269.                                                                                                                         
                                                                                                                                
8:33:00 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER removed his objection.                                                                                   
                                                                                                                                
8:33:12 AM                                                                                                                    
                                                                                                                                
CO-CHAIR PARISH  announced there  being no further  objection, HB
 was  reported from the  House Community and  Regional Affairs                                                               
Standing Committee.