04/24/2019 01:30 PM Senate JUDICIARY

         SB 52-ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG                                                                      
                                                                                                                                
1:33:19 PM                                                                                                                    
CHAIR HUGHES announced that the  first order of business would be                                                               
SENATE  BILL NO.  52, "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."                                                                                           
                                                                                                                                
CHAIR HUGHES made opening remarks.                                                                                              
                                                                                                                                
1:33:54 PM                                                                                                                    
SENATOR  MICCICHE  said he  looks  forward  to hearing  from  the                                                               
public.                                                                                                                         
                                                                                                                                
1:34:16 PM                                                                                                                    
CHAIR HUGHES opened public testimony on SB 52.                                                                                  
                                                                                                                                
1:34:32 PM                                                                                                                    
BEVERLY  SCHOONOVER, Acting  Director, Alaska  Advisory Board  on                                                               
Alcoholism   and  Drug   Abuse,  Alaska   Mental  Health   Board,                                                               
Department of  Health and Social Services  (DHSS), Juneau, stated                                                               
that  the  agencies she  oversees  are  statutorily charged  with                                                               
planning and  coordinating behavioral  health services  funded by                                                               
the state. The  boards are in support of SB  52, which provides a                                                               
much-needed  update  to  the  Title  4  provisions  and  includes                                                               
prevention measures  to reduce underage  drinking. She  said that                                                               
the  agencies have  made progress  to  reduce underage  drinking.                                                               
According to the annual youth  risk behavioral survey (YRBS) over                                                               
the last 25  years there have been declines in  the percentage of                                                               
youth  starting drinking  before 13  years of  age. However,  the                                                               
department   knows  that   underage  drinking,   including  binge                                                               
drinking  occurs in  Alaska. In  2017, nearly  15 percent  of the                                                               
students  surveyed in  the YRBS  reported binge  drinking in  the                                                               
past 30 days.  She related that is  four or more drinks  in a row                                                               
for females and five or more  drinks in a row for males. Underage                                                               
drinking,  especially binge  drinking  is  harmful to  adolescent                                                               
brain  development.   The  department  does  not   want  Alaska's                                                               
teenagers  engaging  in other  risky  behaviors  while under  the                                                               
influence of  alcohol. The  department believes  the preventative                                                               
measures  outlined in  SB  52 will  reduce  underage drinking  in                                                               
Alaska for  the following  reasons. SB 52  would hold  adults who                                                               
supply  alcohol  to  youth  accountable  by  maintaining  current                                                               
penalties for  furnishing alcohol  to a  minor, especially  if it                                                               
causes the youth  harm or is a repeat offense,  both of which are                                                               
felonies  under the  bill. This  bill also  provides much  needed                                                               
resources for enforcement of Title  4 by increasing license fees,                                                               
many  of which  have not  been  increased in  decades, which  has                                                               
continued to  limit the ABC Board's  ability to do its  job. This                                                               
includes ensuring  that businesses do  not sell or  serve alcohol                                                               
to minors. She thanked Senator  Micciche for sponsoring this bill                                                               
for  his  steadfast leadership  to  the  large group  of  diverse                                                               
contributors  who  have worked  hard  to  find solutions  through                                                               
compromise  and move  these changes  forward for  the last  seven                                                               
years.                                                                                                                          
                                                                                                                                
1:36:29 PM                                                                                                                    
LEE ELLIS, President, Brewers Guild  of Alaska, Anchorage, stated                                                               
support for  SB 52. He said  that over the multi-year  process of                                                               
developing the compromises in this bill,  the bill is fair. It is                                                               
not considered a  gift to the Brewers Guild of  Alaska, but it is                                                               
fair to every stakeholder in the  process. He said that his group                                                               
would  like to  honor that  process by  supporting this  bill. He                                                               
further wanted  to support  the efforts  by Senator  Micciche and                                                               
others who  have been involved in  the process. He said  that the                                                               
bill will  benefit the  industry by  cleaning up  the regulations                                                               
that  affect it.  He said  brewery  startups often  must hire  an                                                               
attorney  to  sort  through  the regulatory  process  to  open  a                                                               
business. Manufacturers  have been a  bright spot in  the economy                                                               
in the  last few  years in  Alaska. Anything  that would  make it                                                               
easier  to assist  entrepreneurs will  benefit the  industry. The                                                               
bill  will still  maintain regulation  on  the tap  room and  the                                                               
three-tier   system    that   is   critical    for   wholesalers,                                                               
manufacturers, and retailers. This has  been the best work by all                                                               
these groups, which is the reason the guild supports it.                                                                        
                                                                                                                                
1:38:17 PM                                                                                                                    
JAN  HILL, Member,  Title 4  Review  Steering Committee,  Haines,                                                               
stated  that she  was a  member of  the Title  4 review  steering                                                               
committee and has  been involved throughout the  process. She has                                                               
served as  cochair of  the local  option subcommittee  with Chris                                                               
Simon, formerly of  the Alaska Department of  Education and Early                                                               
Development. She  emphasized that Title  4 very much needs  to be                                                               
modernized and  SB 52  is a  huge step  forward. She  related the                                                               
subcommittee talked  extensively about the impacts  of alcohol on                                                               
dry and  damp communities, alcohol-related  crimes, and  the need                                                               
to improve Title  4 in order to increase  enforcement. While much                                                               
work still needs  to be done with local option  laws, SB 52 makes                                                               
some  important   changes.  One  of   these  is  to   give  rural                                                               
communities  access to  existing data  about legal  alcohol sales                                                               
and deliveries,  so law  enforcement can  understand the  flow of                                                               
alcohol into rural Alaska. Another  change is regulating Internet                                                               
sales to  ensure that a  person in a  dry community is  not using                                                               
this loophole to get around  the monthly order limits in existing                                                               
laws. She  stated her  support for  SB 52.  She urged  members to                                                               
pass the bill this year.                                                                                                        
                                                                                                                                
1:39:58 PM                                                                                                                    
LOGAN DANIELS,  Healthy Voices  Healthy Choices,  Anchorage, said                                                               
that a friend's brother was  killed by a 16-year-old drunk driver                                                               
in  the Lower  48. He  said  that anything  that can  be done  to                                                               
modernize the regulations and limit  youth access to alcohol will                                                               
be a step in the right direction.                                                                                               
                                                                                                                                
1:41:25 PM                                                                                                                    
CHAIR HUGHES, after  first determining no one  wished to testify,                                                               
closed public testimony on SB 52.                                                                                               
                                                                                                                                
[SB 52 was held in committee.]