02/17/2025 03:15 PM House LABOR & COMMERCE

                        SB 15-ALCOHOL: SALE, WARNING SIGNS                                                                  
                                                                                                                                
3:21:05 PM                                                                                                                    
                                                                                                                                
CO-CHAIR      FIELDS    announced       that   the    first    order    of   business      would                                
be   SENATE     BILL   NO.    15,   "An   Act    relating     to   the   sale    of   alcohol;                                  
relating        to    the     posting       of     warning       signs      for     alcoholic                                   
beverages; and providing for an effective date."                                                                                
                                                                                                                                
3:21:32 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS opened public testimony on SB 15.                                                                               
                                                                                                                                
3:21:47 PM                                                                                                                    
                                                                                                                                
DANA    WALUKIEWICZ,        Chair,      Alcohol     Beverage       Control     Board     (ABC),                                 
began    by   stating     that    SB  15   is   similar     to  a   bill   that    passed     the                               
prior      year     just     minutes      after      the    midnight       deadline,        thus                                
killing     that    legislation.          He   stated     that    ABC   voted    unanimously                                    
in   favor    of   the    previous      legislation        last    year    and   again     voted                                
unanimously in favor of SB 15.                                                                                                  
                                                                                                                                
MR.    WALUKIEWICZ        made    some    requests      for    changes      to   SB   15.      He                               
asked     that    the    effective       date    of    the    proposed      legislation        be                               
changed      to   immediate       with    the    exception      of    the   provisions        for                               
the   signage,      which     he  requested       be   changed     to   take    effect     three                                
months     after     passage      to   ensure     adequate      time     for   the    printing                                  
and    distribution        of   the    signage      to   the    licensees.          He   stated                                 
that,      without        this      exception,         adoption        of     the     proposed                                  
legislation         would     result      in    automatic        noncompliance          by    the                               
licensees.         He  concluded       by   offering     his    belief    that    SB   15   is   a                              
good bill.                                                                                                                      
                                                                                                                                
3:24:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE          CARRICK      requested        that    Mr.     Walukiewicz        repeat                                 
which provision would impact his work.                                                                                          
                                                                                                                                
MR.    WALUKIEWICZ       stated      that    there     is   language      in   the    proposed                                  
legislation         requiring        updates      to     warning      signs      posted       for                               
alcoholic      beverages.         He   explained      that    the    Alcohol     &  Marijuana                                   
Control       Office      (AMCO)      is    responsible        for     the    printing        and                               
distribution         of   the    signage.         He   stated      that    there     are    many                                
licensees       in   remote      areas,     and    it   would     take     a  while     to    get                               
signs     printed     and    distributed        to   all    licensees.         He    commented                                  
AMCO    would    like    to   avoid    a  situation       where,     upon   passage      of   the                               
proposed      legislation,        a   number    of   licensees       would    automatically                                     
become     noncompliant.           However,      he   stated     that     ABC   and    AMCO    is                               
very    supportive       of    the   proposed       legislation       becoming      effective                                   
immediately        for   the    purpose     of   allowing      18-    to   20-year-olds        to                               
serve      alcoholic         beverages.            He     stated       the     industry        is                               
experiencing         a   shortage      of    qualified       labor     and    ABC    and    AMCO                                
would     like    to  allow     returning       college     students      to   work    for    the                               
hospitality industry.                                                                                                           
                                                                                                                                
3:26:10 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS, after ascertaining that there was no one else                                                                  
who wished to testify, closed public testimony on SB 15.                                                                        
                                                                                                                                
CO-CHAIR FIELDS moved to adopt Amendment 1 to SB 15, labeled 34-                                                                
LS01063\A.1, C. Radford, 2/17/25, which read as follows:                                                                        
                                                                                                                                
        Page 2, following line 17:                                                                                              
               Insert new bill sections to read:                                                                                
           "* Sec. 3. AS 04.09.220(d) is amended to read:                                                                       
               (d)  Alcoholic beverages sold under a club license may be purchased only                                         
        by                                                                                                                      
                       (1)  members of the club and their families;                                                             
                       (2)  widows or widowers of deceased members of the club who                                              
        have been accorded club privileges; [AND]                                                                               
                       (3)  military personnel on active duty who are extended the                                              
        privilege by patriotic organizations; and                                                                             
                       (4)  members of a patriotic organization licensed under this                                           
   section that has a reciprocity agreement with another patriotic organization                                               
        licensed under this section.                                                                                          
           * Sec. 4. AS 04.09.220 is amended by adding a new subsection to read:                                                
               (m)  A patriotic organization licensed under this section may enter into a                                       
        reciprocity agreement   with  another patriotic organization  licensed  under  this                                     
        section to allow each organization to sell alcoholic beverages to members  of both                                      
        organizations. The decision to enter into a reciprocity agreement shall be made by                                      
        a  majority  of  members    present  at  a  general   meeting   of  each  patriotic                                     
        organization."                                                                                                          
                                                                                                                                
        Renumber the following bill sections accordingly.                                                                       
                                                                                                                                
3:26:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CARRICK objected for the purpose of discussion.                                                                  
                                                                                                                                
3:26:30 PM                                                                                                                    
                                                                                                                                
CO-CHAIR        FIELDS       stated       that     there       is    a     constituent         in                               
Representative          Stutes'       district       who    is    associated         with     the                               
American      Legion.       The    constituent       brought      to   members'      attention                                  
the      concept       of     reciprocity          for     patriotic         organizations,                                     
primarily       the   Veterans       of   Foreign      Wars    (VFW)     and   the    American                                  
Legion.        He   explained       that,    currently,       it    is   violation      of    law                               
for    a   VFW   Hall     to   serve     alcohol      to   a   member     of   the    American                                  
Legion     and    vice     versa.        He   explained       that     Amendment       1   would                                
allow    members      of   the   two    aforementioned         patriotic      organizations                                     
to   attend     each    other's     facilities       and    have    a  drink.       He   stated                                 
that    Amendment      1  would    not    impact    other     membership-based          groups,                                 
like the Lions [Club] or the Moose Lodge.                                                                                       
                                                                                                                                
REPRESENTATIVE         CARRICK      asked    for    clarification        that    Amendment       1                              
is not related to minors serving alcohol.                                                                                       
                                                                                                                                
CO-CHAIR FIELDS responded yes.                                                                                                  
                                                                                                                                
3:28:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE         CARRICK      removed     her    objection       to   Amendment      1   to                               
SB    15.       There     being     no    further      objection,        Amendment       1    was                               
adopted.                                                                                                                        
                                                                                                                                
3:28:28 PM                                                                                                                    
                                                                                                                                
CO-CHAIR      FIELDS     stated,     as   illustrated        by   the   public     testimony,                                   
that    there     is  a   desire     among    employers       to   adjust     the    effective                                  
date of the proposed legislation.                                                                                               
                                                                                                                                
CO-CHAIR      FIELDS    moved     to  adopt    Amendment       2  to  SB   15,   as   amended,                                  
labeled       34-LS0163\A.3,          C.    Radford,        2/17/25,       which      read     as                               
follows:                                                                                                                        
                                                                                                                                
        Page 6, following line 23:                                                                                              
               Insert a new bill section to read:                                                                               
           "* Sec. 14. Section 12 of this Act takes effect October 1, 2025."                                                    
                                                                                                                                
        Renumber the following bill section accordingly.                                                                        
                                                                                                                                
        Page 6, line 24:                                                                                                        
               Delete "This"                                                                                                    
               Insert "Except as provided in sec. 14 of this Act, this"                                                         
                                                                                                                                
3:28:39     PM                                                                                                                
                                                                                                                                
CO-CHAIR HALL objected for the purpose of discussion.                                                                           
                                                                                                                                
3:28:47     PM                                                                                                                
                                                                                                                                
CO-CHAIR        FIELDS      began      comment       pertaining         to    [an     upcoming                                  
conceptual amendment to] Amendment 2.                                                                                           
                                                                                                                                
3:29:24     PM                                                                                                                
                                                                                                                                
The committee took a brief at-ease at 3:29 p.m.                                                                                 
                                                                                                                                
3:29:45     PM                                                                                                                
                                                                                                                                
CO-CHAIR       FIELDS       moved     to    adopt      Conceptual         Amendment       1    to                               
Amendment       2  to   SB   15,    as   amended.        [Conceptual        Amendment       1  to                               
Amendment      2   is   included     in   the    committee      packet     as   Amendment      2,                               
with    handwritten       changes      in  blue    writing,      and    it  is   included      in                               
the committee file].                                                                                                            
                                                                                                                                
3:30:10     PM                                                                                                                
                                                                                                                                
CO-CHAIR HALL objected for the purpose of discussion.                                                                           
                                                                                                                                
3:30:13     PM                                                                                                                
                                                                                                                                
CO-CHAIR FIELDS explained the handwritten changes, as follows:                                                                  
                                                                                                                                
        And   you    will     see    in   writing      this    is    the   conceptual                                           
        amendment          language          that       we       discussed           with                                       
        [Legislative]        Legal     [Services]       to   make    sure    those    are                                       
        the   correct      dates    for   May    implementation         for   purposes                                          
        of   hiring     and    for   August      implementation         for   purposes                                          
        of  signage,      which    addresses       both   the   urgency      of  hiring                                         
        and,   as   Mr.   Walukiewicz       mentioned,       the   time    to   get   the                                       
        updated signs.                                                                                                          
                                                                                                                                
3:30:48     PM                                                                                                                
                                                                                                                                
CO-CHAIR      HALL   removed      her   objection      to   Conceptual       Amendment      1  to                               
Amendment       2.     [The    committee      treated      Conceptual       Amendment       1  to                               
Amendment 2 as adopted.]                                                                                                        
                                                                                                                                
CO-CHAIR       FIELDS       brought      the     committee's         attention        back     to                               
Amendment       2,   [as    amended].         He   announced       that    there     being     no                               
objection,        Amendment        2,    [as     amended],        was     adopted.          [The                                
objection by Co-Chair Hall was treated as removed.]                                                                             
                                                                                                                                
3:31:24 PM                                                                                                                    
                                                                                                                                
CO-CHAIR       HALL     moved      to    report      SB    15,    as    amended,        out    of                               
committee       with    individual        recommendations         and    the    accompanying                                    
fiscal     notes.        There     being     no    objection,       HCS    SB    15(L&C)      was                               
reported out of the House Labor and Commerce Standing Committee.