03/12/2021 01:30 PM Senate LABOR & COMMERCE

          SB 9-ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG                                                                      
                                                                                                                                
1:30:26 PM                                                                                                                    
CHAIR COSTELLO announced the consideration  of SENATE BILL NO. 9,                                                               
"An  Act  relating  to  alcoholic   beverages;  relating  to  the                                                               
regulation  of  manufacturers,   wholesalers,  and  retailers  of                                                               
alcoholic  beverages;  relating  to licenses,  endorsements,  and                                                               
permits  involving   alcoholic  beverages;  relating   to  common                                                               
carrier  approval to  transport or  deliver alcoholic  beverages;                                                               
relating  to the  Alcoholic Beverage  Control Board;  relating to                                                               
offenses  involving  alcoholic  beverages; amending  Rule  17(h),                                                               
Alaska Rules  of Minor  Offense Procedure;  and providing  for an                                                               
effective date."                                                                                                                
                                                                                                                                
1:31:12 PM                                                                                                                    
SENATOR   PETER  MICCICHE,   sponsor  of   SB  9,   Alaska  State                                                               
Legislature,  Juneau, Alaska,  summarized  that the  goal of  the                                                               
legislation is  to modernize  the Title  4 alcohol  statutes with                                                               
changes  that improve  the processes  for  public safety,  public                                                               
health, and the industry.                                                                                                       
                                                                                                                                
1:32:12 PM                                                                                                                    
CHAIR COSTELLO opened public testimony on SB 9.                                                                                 
                                                                                                                                
1:32:24 PM                                                                                                                    
LEE  ELLIS,  President,  Brewers   Guide  of  Alaska;  President,                                                               
Midnight Sun  Brewing Company, Anchorage, Alaska,  stated that it                                                               
has taken  nine years of hard  work to come to  consensus on what                                                               
the modern alcohol  laws should look like. SB 9  is the best work                                                               
of   120  different   stakeholders   from   public  health,   law                                                               
enforcement,  and the  wholesalers, retailers,  and manufacturers                                                               
in the  alcohol industry. He  said modernization is  critical for                                                               
the  industry, as  is streamlining  licensing, and  enhancing the                                                               
privileges  of craft  breweries. He  encouraged the  committee to                                                               
move the bill.                                                                                                                  
                                                                                                                                
1:34:17 PM                                                                                                                    
ROBIN MINARD,  MatSu Health  Foundation, Wasilla,  Alaska, stated                                                               
that  the  foundation  supports  SB 9  because  it  represents  a                                                               
multiyear,   multi-stakeholder  partnership   with  the   alcohol                                                               
industry to  promote the  responsible use  of alcohol  by adults,                                                               
reduce  underage  consumption,   support  better  enforcement  of                                                               
Alaska's alcohol laws,  and have a healthy  industry. She thanked                                                               
the committee and  asked that they move the  bill forward because                                                               
it has health benefits for all Alaskans.                                                                                        
                                                                                                                                
1:36:00 PM                                                                                                                    
EVAN WOOD, Co-owner and Co-founder,  Devils Club Brewery, Juneau,                                                               
Alaska, agreed  with previous testimony  that it has been  a long                                                               
journey to arrive  at SB 9. He  said it is a  rare opportunity to                                                               
have all  the stakeholders  on the  same page  in support  of the                                                               
legislation in its  current form. The past year  has been onerous                                                               
and  he believes  that passing  the bill  in an  expedited manner                                                               
would be alleviating for the industry.                                                                                          
                                                                                                                                
1:37:32 PM                                                                                                                    
SARAH  OATS,  President,  Alaska  Cabaret  Hotel  Restaurant  and                                                               
Retailers  Association (CHARR),  Anchorage,  Alaska, stated  that                                                               
Alaska  CHARR is  the state's  trade association  that represents                                                               
many of the  2000 liquor licenses statewide. She  said that after                                                               
many years, stakeholders reached  consensus on a thoughtful draft                                                               
of alcohol  regulatory reform. There  was agreement  among public                                                               
health,  public safety,  state and  municipal regulatory  bodies,                                                               
and the three industry tiers. SB 9 captures that consensus.                                                                     
                                                                                                                                
MS. OATS  said Alaska  CHARR fully  supports SB  9 and  urges the                                                               
committee to  pass the legislation, which  will provide long-term                                                               
regulatory certainty.  She described the impact  the pandemic has                                                               
had  on  the industry  and  emphasized  that  SB 9  provides  the                                                               
opportunity to move  forward with a better  regulatory system and                                                               
for  Alaska's  second largest  industry  to  thrive. The  changes                                                               
include the  penalty modifications for violations  to ensure fair                                                               
and   consistent   enforcement   of   alcohol   laws;   expedited                                                               
application  processes;  and  statutes  that  make  it  easy  for                                                               
industry   members   to   understand  their   legal   privileges,                                                               
restrictions, and expectations.                                                                                                 
                                                                                                                                
1:40:34 PM                                                                                                                    
TIFFANY HALL, Recover Alaska, Anchorage,  Alaska, stated that for                                                               
many  years Recover  Alaska has  worked hand  in hand  with other                                                               
public health  and safety proponents,  all levels of  the alcohol                                                               
industry, as well as local, municipal and community leaders.                                                                    
                                                                                                                                
She cited data  to show that Alaska struggles  with many problems                                                               
associated with  alcohol. Alaskans die  at rates three  times the                                                               
national average  and alcohol costs  the state $2.4  billion, 709                                                               
million  of  which  is lost  productivity.  Other  costs  include                                                               
health  care, criminal  justice, traffic  collisions, and  social                                                               
services.                                                                                                                       
                                                                                                                                
MS.  HALL said  Recover Alaska  supports  SB 9  for its  positive                                                               
health  and safety  provisions that  are largely  evidenced-based                                                               
practices.  These   practices  will   work  to   reduce  underage                                                               
drinking,  increase public  safety  by  reducing alcohol  related                                                               
violence  and  crime, and  will  reduce  alcohol related  deaths.                                                               
Further,  the bill  will provide  clarity and  education for  the                                                               
Alcohol and  Marijuana Control Office  and licensees,  which will                                                               
make it easier  for everyone to follow and enforce  Title 4 laws.                                                               
She said all stakeholders can agree on this bill.                                                                               
                                                                                                                                
1:42:46 PM                                                                                                                    
JEANNE  REILLY, Reilly's  Irish  Pub,  Anchorage, Alaska,  stated                                                               
that the  industry has come  together with the Brewers  Guild and                                                               
the  beverage  dispensary  licensees in  a  fantastic  compromise                                                               
after many years of debate. She  voiced support and hope that the                                                               
bill would move forward.                                                                                                        
                                                                                                                                
1:43:50 PM                                                                                                                    
CHAIR COSTELLO closed  public testimony on SB  9 after discerning                                                               
that nobody else wished to comment.                                                                                             
                                                                                                                                
SENATOR STEVENS  asked the sponsor  to remind the  committee what                                                               
SB 9 does to control substance abuse.                                                                                           
                                                                                                                                
SENATOR MICCICHE answered  that the bill will  help by clarifying                                                               
the  way   licensees  operate  and   by  providing   funding  for                                                               
additional enforcement. Under current  law, many infractions that                                                               
are  misdemeanors  are  neither  enforced nor  prosecuted.  SB  9                                                               
changes those infractions to violations  with an associated fine.                                                               
The penalty  is immediate  and does  not require  extensive court                                                               
time. The  bill also  links the license  holder to  the violation                                                               
when a server  overserves somebody or serves a  minor. Along with                                                               
this, there  is funding  for education so  licensees know  how to                                                               
comply  with the  rules.  He  noted that  part  of the  education                                                               
outreach includes the new marijuana rules.                                                                                      
                                                                                                                                
CHAIR  COSTELLO  found  no  further  questions  and  solicited  a                                                               
motion.                                                                                                                         
                                                                                                                                
1:46:42 PM                                                                                                                    
SENATOR REVAK moved to report  SB 9, work order 32-LS0124\B, from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
note(s).                                                                                                                        
                                                                                                                                
1:46:54 PM                                                                                                                    
CHAIR  COSTELLO found  no  objection  and SB  9  passed from  the                                                               
Senate Labor and Commerce Standing Committee.                                                                                   
                                                                                                                                
1:47:04 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
1:48:57 PM                                                                                                                    
CHAIR COSTELLO reconvened the meeting  and invited the sponsor to                                                               
make closing remarks.                                                                                                           
                                                                                                                                
SENATOR  MICCICHE  said  many  people worked  on  this  bill  and                                                               
significantly  improved  it  in   the  process.  He  thanked  the                                                               
committee for moving  the bill and for the help  in past years to                                                               
improve the bill.