Legislature(2019 - 2020)ADAMS ROOM 519
05/13/2019 02:30 PM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB44 | |
| HB139 | |
| SB16 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 44 | TELECONFERENCED | |
| += | HB 139 | TELECONFERENCED | |
| + | SB 16 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
CS FOR SENATE BILL NO. 16(FIN)
"An Act relating to certain alcoholic beverage
licenses and permits; relating to the bond requirement
for certain alcoholic beverage license holders; and
providing for an effective date."
4:14:37 PM
Vice-Chair Johnston MOVED to ADOPT proposed committee
substitute for CSSB 16 (FIN), Work Draft 31-LSS0283\C
(Bruce, 5/13/19) (copy on file).
Representative Josephson OBJECTED for discussion.
Co-Chair Wilson reviewed the sectional changes. She
reported that Section 1 amended AS 04.11.210 that related
to the types of licenses and permits. The section added a
fair license and performing arts license to the list.
Section 2 added a new section to AS 04.11.205 pertaining to
a performing arts theatre license. She noted that the
section defined the license. The license currently existed
in regulation and the section moved it into statute. She
indicated that Section 3 added a new subsection to AS
04.11.210 (d) that grandfathered in previously licensed
entities under the recreation site license if they were
valid on December 31, 2018, were operating in accordance to
the terms of their license, and were disqualified by the
Alcoholic Beverage Control Board (ABC). She moved to
Section 4 and explained that the new section referred to
Fair licenses. The section defined the type of license and
established a biennial fee of $800. She related that
Section 5 amended AS 04.11.330 (d) to require performing
art theatres and recreational site licenses to use their
license at least once in two calendar years in order for
renewal. She reported that Section 6 included existing
language that limited entry to individuals under 21 years
of age to be accompanied by a parent or individual over 21
years of age. The individual was permitted entry under a
club license issued under AS.04.11. (g) or otherwise
provided under (c), (d), or (g), or (i) of the section.
Section 7 added provisions for conditions which minors
could be permitted on a licensed premise, performing arts
theatre or golf course with alcohol service. Section 8
amended AS 04.21.065 (a) that required posting a notice of
the license on the premise. Sections 9 through 11 amended
AS 43.60.040 relating to the administration and enforcement
of taxes. The provisions provided incentives for on-time
filing for the most recent three years. She specified that
the provisions removed a $25 thousand surety bond
requirement if all other requirements were met. The
remainder of the bill added effective dates sections which
included retroactivity.
4:18:28 PM
Co-Chair Wilson OPENED public testimony.
Co-Chair Wilson indicated that the committee would hear
additional public testimony the following morning.
CHRIS MAHER, ALASKA TRAVEL ADVENTURES, JUNEAU, provided his
testimony. He elaborated that the company was in business
for 40 years and operated the Gold Creek Salmon Bake. The
salmon bake served beer and wine for 40 years under the
recreational site license, which also allowed them to
provide music for its guests. They were given notice three
years prior that their license would be revoked, and they
purchased a restaurant license. In order to obtain the
restaurant license, he had to surrender to recreational
site license. He explained that the current version of the
bill limited music to the hours of 3:00 p.m. to 11:00 p.m.
The prior version of the bill allowed music from 11:00 a.m.
to 7:00 p.m. He had hoped to request an extension to 8:00
p.m. but was astonished to find that he could not play
music for his lunch guests. He requested an amendment that
would enable him to regain his recreational site license.
Co-Chair Wilson deduced that if his license was reinstated,
would he be able to play music at lunch time. Mr. Maher
responded in the affirmative. Co-Chair Wilson appreciated
the testimony. She was unaware that some of the
grandfathered licenses were surrendered.
Representative Merrick asked for the hours of operation for
the salmon bake. Mr. Maher responded that the hours varied
depending on the cruise ship schedule but was roughly 10:30
a.m. to 9:30 p.m. He hoped that music would be allowed from
11:00 a.m. to 11:00 p.m. The timeframe would encompass all
his customers.
Co-Chair Wilson reiterated her surprise upon hearing some
businesses had to surrender their prior license in order to
comply with the boards new regulatory interpretation. She
pledged to address the issue.
4:24:45 PM
ROBERT BREWSTER, CEO, ALAKSA CLUB, ANCHORAGE (via
teleconference), spoke in favor of the bill. He indicated
that the club had a recreational site license for 8 years.
He related that the club complied with all aspects of the
license and operated their business model to include
serving beer and wine. The ABC board forced the club to
stop serving alcoholic beverages for 11 months while the
issue was under appeal. An administrative judge reinstated
their license. The judge ruled that the clubs
constitutional rights to equal protection was violated and
was inappropriate for the license to be revoked while the
issue was under appeal. He noted that he was once again
informed that his license would not be renewed. He feels
that his and other businesses were subjected to
devastating results due to the boards change in
licensing. He stated that his and other businesses applied
for the license and operated responsibly and in good faith.
He asked the committee to correct the situation regarding
non-renewals that served no valid public purpose while
harming responsible businesses. He asked the committee to
pass the bill.
Co-Chair Wilson asked whether the committee substitute (CS)
version of the bill would rectify his situation. Mr.
Brewster responded in the affirmative.
4:28:41 PM
Representative Knopp asked if the language that allowed
music from the hours of 3:00 p.m. to 11:00 p.m. was
eliminated from the CS. Co-Chair Wilson was unaware that
certain businesses had surrendered their licenses. She
thought that if language was added to include reinstatement
of the surrendered licenses it would cover all the
activities that were previously allowed. She conveyed that
if the activity under the license changed then the licenses
would not be renewed. However, she understood that the
current situation involved reinterpretation by the ABC
Board that caused the businesses to lose their license and
the licensees were operating in compliance with the
license. Representative Knopp wanted to offer an amendment
that would allow music from 11:00 a.m. to 11:00 p.m. He
thought that the 3:00 p.m. to 11:00 p.m. language was
limiting and nonsensical. Co-Chair Wilson concurred with
the amendment. She also wanted to address the surrendered
license issue.
Representative Merrick cited Mr. Mahers testimony
regarding a 9:30 P.m. end time. She wondered whether the
9:30 p.m. end time was more appropriate in case the
location was in a residential area. Mr. Maher responded
that the company had been in business at the current sight
for over 25 years without any problems. He believed that
noise ordinances regulated the concern. Representative
Merrick did not want to cause any problems.
Co-Chair Wilson relayed that city ordinances trumped state
statute.
4:32:59 PM
Vice-Chair Ortiz asked about the amendment process for SB
16.
Co-Chair Wilson announced that amendments were due by the
following mornings meeting. She discussed the amendment
process.
CSSB 16(FIN) was HEARD and HELD in committee for further
consideration.
Co-Chair Wilson reviewed the agenda for the following day's
meeting at 9:00 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 44 HCS WORKDRAFT FIN v.G (included presc. drug items).pdf |
HFIN 5/13/2019 2:30:00 PM |
SB 44 |
| HB 139 APFC Follow Up HFIN_11MAY19.pdf |
HFIN 5/13/2019 2:30:00 PM |
HB 139 |
| SB44 vsn O Explanation of Changes House FIN 5-13-19.pdf |
HFIN 5/13/2019 2:30:00 PM |
SB 44 |
| SB 16 HCS WORKDRAFT FIN v.C.pdf |
HFIN 5/13/2019 2:30:00 PM |
SB 16 |