04/28/1998 01:35 PM Senate L&C

                                                                               
         CSHB 411(FIN) - LOCAL OPTION FOR WINERY LICENSE                       
                                                                               
CHAIRMAN LEMAN closed the confirmation hearing portion of the                  
meeting and then brought HB 411 before the committee.                          
                                                                               
REPRESENTATIVE ALAN AUSTERMAN, prime sponsor of HB 411, explained              
the legislation is a minor change to the statute to allow the                  
possibility of a small winery business to be established,                      
particularly in one of the villages on Kodiak Island, although it              
could apply to the rest of the state.   Because of the way the ABC             
statutes are written, it was felt that the winery licensee portion             
had to be added to the exemption clauses which would then allow the            
local communities to have a vote to allow a winery to take place.              
                                                                               
SENATOR MACKIE asked if the statutes contain a definition of a                 
winery.                                                                        
                                                                               
DOUG GRIFFIN, Director, Alcoholic Beverage Control Board, stated               
the ABC Board's position as being neutral and not having any                   
objection to the legislation.  He confirmed  the change allows the             
ability to start a winery as part of one of the options that are               
available to local residents under the local option process.                   
                                                                               
In response to Senator Mackie's question, MR. GRIFFIN clarified                
that the state of Alaska relies on the definition for wine that's              
provided by the federal government.  The Bureau of Alcohol, Tobacco            
and Firearms is more involved in the manufacturing of a product.               
He said he didn't have the definition in front of him, but it                  
basically would be a product that's fermented from grapes or other             
types of fruit.  On Kodiak Island they are looking at a wildberry              
winery and it would be within a certain alcohol content.                       
                                                                               
SENATOR MACKIE asked if a winery would be regulated in the same                
manner by the ABC Board as any other industry would.  MR. GRIFFIN              
acknowledged that was correct.  He stressed that there would have              
to be a local option election held before a winery could be                    
established.                                                                   
                                                                               
CHAIRMAN LEMAN asked if the winery would be just exporting its                 
product.  MR. GRIFFIN replied that could be the case if that is the            
option it chooses, but a community could also allow for limited                
sale of the product as well.  He noted there are communities in                
other parts of the country involved in the  manufacturing of a                 
product but they remain dry communities.                                       
                                                                               
There being no further testimony on HB 411, CHAIRMAN LEMAN asked               
for the pleasure of the committee.                                             
                                                                               
SENATOR MACKIE moved that CSHB 411(FIN) be passed out of committee             
with individual recommendations.  Hearing no objection, it was so              
ordered.