Legislature(2019 - 2020)BELTZ 105 (TSBldg)
04/26/2019 01:30 PM Senate JUDICIARY
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| Audio | Topic |
|---|---|
| Start | |
| SB52 | |
| SJR9 | |
| HB12 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 52 | TELECONFERENCED | |
| += | HB 12 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SJR 9 | TELECONFERENCED | |
SB 52-ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG
1:39:03 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."
[Before the committee was CSSB 52(L&C), Version S.]
1:39:14 PM
SENATOR REINBOLD moved to adopt Amendment 1, work order 31-
LS0004\S.2, Bruce, 4/18/19.
AMENDMENT 1
OFFERED IN THE SENATE BY SENATOR REINBOLD
TO: CSSB 52(L&C), Draft Version "S"
Page 6, line 19:
Delete "1,250"
Insert "1,000"
Page 22, line 19:
Delete "1,250"
Insert "1,000"
CHAIR HUGHES objected for discussion purposes.
SENATOR REINBOLD said this would reduce the fees for the six
wineries in the state from $1,250 to $1,000, which is still a
significant increase.
1:40:30 PM
SENATOR MICCICHE stated that he cosponsored Amendment 1.
CHAIR HUGHES removed her objection. There being no further
objection, Amendment 1 was adopted.
1:40:42 PM
SENATOR MICCICHE moved to adopt Amendment 2, work order 31-
LS0004\S.4, Bruce, 4/22/19.
AMENDMENT 2
OFFERED IN THE SENATE BY SENATOR MICCICHE
TO: CSSB 52(L&C)
Page 15, line 31, following the second occurrence of
"a":
Insert "package store"
Page 47, line 4:
Delete "Tasting"
Insert "Package store tasting"
Page 47, line 4, following "A":
Insert "package store"
Page 47, line 11, following the first occurrence of
"a":
Insert "package store"
Page 47, line 14, following "six":
Insert "package store"
Page 47 line 19, following the first occurrence of
"a":
Insert "package store"
Page 47, line 23, following "a":
Insert "package store"
Page 106, line 3, following "(25)":
Insert "package store"
CHAIR HUGHES objected for discussion purposes.
1:40:54 PM
SENATOR MICCICHE explained that Amendment 2 provides technical
cleanup language that corrects a drafting error.
CHAIR HUGHES removed her objection. There being no further
objection, Amendment 2 was adopted.
1:41:36 PM
At-ease.
1:42:04 PM
CHAIR HUGHES reconvened the meeting.
1:42:09 PM
SENATOR MICCICHE provided a corrected explanation of Amendment
2. He said that Amendment 2 is a technical amendment related to
the package store tasting event permit, which is consistent with
the catering permit becoming a beverage dispensary caterer's
permit.
1:42:37 PM
SENATOR MICCICHE moved to adopt Amendment 3, work order 31-
LS0004\S.5, Bruce, 4/20/19.
AMENDMENT 3
OFFERED IN THE SENATE BY SENATOR MICCICHE
TO: CSSB 52(L&C)
Page 48, line 23:
Delete "punishable under AS 04.21.072"
Page 48, line 25, following "is":
Insert "a violation"
CHAIR HUGHES objected for discussion purposes.
SENATOR MICCICHE explained that this is a technical amendment as
previously described related to a drafting error.
CHAIR HUGHES removed her objection. There being no further
objection, Amendment 3 was adopted.
1:43:03 PM
SENATOR MICCICHE moved to adopt Amendment 4, work order 31-
LS0004\S.8, Bruce, 4/22/19.
AMENDMENT 4
OFFERED IN THE SENATE BY SENATOR MICCICHE
TO: CSSB 52(L&C)
Page 94, lines 21 - 22:
Delete "approved by the board under
AS 04.09.750(b)"
CHAIR HUGHES objected for discussion purposes.
SENATOR MICCICHE explained that the carrier approval is intended
to apply to company carriers who transport and deliver orders of
wine or alcohol from a licensed business to a consumer. He
related that carrier approval is not required for a carrier used
by individuals to transport alcohol in their possession.
CHAIR HUGHES removed her objection. There being no further
objection, Amendment 4 was adopted.
1:43:40 PM
SENATOR MICCICHE moved to adopt Amendment 5, work order 31-
LS0004\S.9, Bruce, 4/22/19.
AMENDMENT 5
OFFERED IN THE SENATE BY SENATOR MICCICHE
TO: CSSB 52(L&C)
Page 95, line 2:
Delete "This section does"
Insert "The requirements in (a) of this section
do [THIS SECTION DOES]"
CHAIR HUGHES objected for discussion purposes.
SENATOR MICCICHE explained that this is a technical amendment
that aligns with the previous amendment.
CHAIR HUGHES removed her objection. There being no further
objection, Amendment 5 was adopted.
1:44:01 PM
SENATOR MICCICHE moved to adopt Amendment 6, work order 31-
LS0004\S.11, Bruce, 4/22/19.
AMENDMENT 6
OFFERED IN THE SENATE` BY SENATOR MICCICHE
TO: CSSB 52(L&C)
Page 19, line 3:
Following "Sporting":
Insert "activity or"
Following "sporting":
Insert "activity or"
Page 19, line 5, following "sporting" in both places:
Insert "activity or" in both places.
Page 19, line 6:
Following "school":
Insert "activity or"
Following "sporting":
Insert "activity or"
Page 19, line 7, following "sporting":
Insert "activity or"
Page 19, line 8, following "sporting":
Insert "activity or"
Page 19, line 9, following "rodeos,":
Insert "skiing and snowboarding activities,"
Page 19, line 11, following "sporting":
Insert "activity or"
Page 19, line 14, following "sporting":
Insert "activity or"
Page 19, line 15, following "sporting":
Insert "activity or"
Page 35, line 4, following "sporting":
Insert "activity or"
Page 44, line 5, following "sporting":
Insert "activities or"
Page 60, line 5, following "sporting":
Insert "activity or"
Page 105, line 19, following "sporting":
Insert "activity or"
Page 118, line 2, following "sporting":
Insert "activity or"
CHAIR HUGHES objected for discussion purposes.
SENATOR MICCICHE explained that this would add skiing and
snowboarding activities to the sporting event license which will
be renamed as the sporting activity license. He said that this
language is also in SB 16, which would ensure that ski areas can
obtain licenses if they meet all of the other requirements.
CHAIR HUGHES removed her objection. There being no further
objection, Amendment 6 was adopted.
1:44:38 PM
SENATOR MICCICHE moved to adopt Amendment 7, work order 31-
LS0004\S.14, Bruce, 4/23/19.
AMENDMENT 7
OFFERED IN THE SENATE BY SENATOR MICCICHE
TO: CSSB 52(L&C)
Page 55, line 26:
Delete "60"
Insert "90"
CHAIR HUGHES objected for discussion purposes.
SENATOR MICCICHE explained that in the previous committee, the
language related to automatic transfer of a restaurant and
eating place license (REPL) was changed to 60 days. He said
although he supports the automatic transfer, that timeframe did
not allow time for municipalities to protest. This amendment
would increase the timeframe to 90 days, but still require an
automatic transfer. This generally would provide sufficient time
for the board to meet and municipalities to file a protest, if
necessary.
1:45:25 PM
SENATOR KIEHL asked whether the remaining language in this
section is written so that a protest by a municipality would
prompt the board to issue a denial or otherwise condition the
application as per the rest of the provisions in Title 4.
SENATOR MICCICHE explained that this language would limit the
board from going beyond their normal meeting dates. He explained
that since the board meets quarterly, extensions sometimes have
gone on for some time and been a disadvantage to restaurants.
This tells the board it is expected to deal with a transfer that
occurs in the 90-day period, but if something significant
occurs, those procedures would remain in place.
1:46:22 PM
CHAIR HUGHES removed her objection. There being no further
objection, Amendment 7 was adopted.
1:46:32 PM
SENATOR KIEHL moved to adopt Amendment 8, work order 31-
LS0004\S.17, Bruce, 4/25/19.
AMENDMENT 8
OFFERED IN THE SENATE BY SENATOR KIEHL
TO: CSSB 52(L&C)
Page 12, line 18, following "to":
Insert "(1)"
Page 12, line 19, following "premises":
Insert "; and
(2) allow a person
(A) under 21 years of age access as
provided in (d) of this section to the licensed
premises; and
(B) to enter or remain on the licensed
premises to consume food or nonalcoholic beverages as
authorized under AS 04.16.010(c)(5)."
Page 12, line 22, following "that":
Insert "(A)"
Page 12, following line 23:
Insert new subparagraphs to read:
"(B) there is supervision on the premises
adequate to reasonably ensure that a person under 21
years of age will not obtain alcoholic beverages; and
(C) it is unlikely that persons under 21
years of age not employed on the premises will enter
and remain on the licensed premises for purposes other
than dining; and"
Page 12, lines 24 - 25:
Delete all material.
Renumber the following paragraph accordingly.
Page 12, following line 28:
Insert a new section to read:
"(d) The board may authorize the holder of a
restaurant or eating place license
(1) to allow a person who is at least 16
years of age but under 21 years of age to enter and
remain on the licensed premises for dining only;
(2) to allow a person who is under 16 years
of age to enter and remain on the licensed premises
for dining only if
(A) the person is accompanied by a person
who is 21 years of age or older; and
(B) the parent or guardian of the person
consents to the person being on the licensed premises;
and
(3) subject to AS 04.16.049, to employ or
permit the employment of a person who is at least 16
years of age but under 21 years of age on the licensed
premises if the employer provides adequate supervision
to ensure that the person does not obtain alcoholic
beverages."
Reletter the following subsections accordingly.
Page 13, line 21:
Delete "or fails to comply with (e)"
Insert ", engages in activity not authorized by
the board under (d) of this section, or fails to
comply with the requirements of (d) or (f)"
Page 26, line 4, following "to":
Insert "(1)"
Page 26, line 5, following "year":
Insert "; and
(2) allow a person
(A) under 21 years of age access as
provided in (f) of this section to the licensed
premises; and
(B) to enter or remain on the licensed
premises to consume food or nonalcoholic beverages as
authorized under AS 04.16.010(c)(5)."
Page 26, line 9, following "that":
Insert "(A)"
Page 26, following line 10:
Insert new subparagraphs to read:
"(B) there is supervision on the premises
adequate to reasonably ensure that a person under 21
years of age will not obtain alcoholic beverages; and
(C) it is unlikely that persons under 21
years of age not employed on the premises will enter
and remain on the licensed premises for purposes other
than dining; and"
Page 26, lines 11 - 12:
Delete all material.
Renumber the following paragraph accordingly.
Page 26, following line 23:
Insert a new subsection to read:
"(f) The board may authorize the holder of a
seasonal restaurant or eating place tourism license
(1) to allow a person who is at least 16
years of age but under 21 years of age to enter and
remain on the licensed premises for dining only;
(2) to allow a person who is under 16 years
of age to enter and remain on the licensed premises
for dining only if
(A) the person is accompanied by a person
who is 21 years of age or older; and
(B) the parent or guardian of the person
consents to the person being on the licensed premises;
and
(3) subject to AS 04.16.049, to employ or
permit the employment of a person who is at least 16
years of age but under 21 years of age on the licensed
premises if the employer provides adequate supervision
to ensure that the person does not obtain alcoholic
beverages."
Reletter the following subsections accordingly.
Page 27, line 19, following "section":
Insert ", engages in activity not authorized by
the board under (f) of this section,"
Page 27, line 20:
Delete "(f) or (h)"
Insert "the requirements of (f), (g), or (i)"
Page 35, line 3:
Delete "restaurant or eating place license,"
Page 35, line 5, following the second occurrence of
"license,":
Insert "or"
Page 35, lines 5 - 6:
Delete ", or seasonal restaurant or eating place
tourism license"
Page 44, line 19:
Delete "AS 04.09.210(d)"
Insert "AS 04.09.210(e)"
Page 44, line 20:
Delete "AS 04.09.350(f)"
Insert "AS 04.09.350(g)"
Page 64, lines 10 - 12:
Delete "[(1) THE LICENSE IS FOR A RESTAURANT OR
EATING PLACE UNDER AS 04.11.100; OR
(2)]"
Insert "(1) the license is [FOR] a
(A) restaurant or eating place license
under AS 04.09.210 [AS 04.11.100]; or
(B) seasonal restaurant or eating place
tourism license under AS 04.09.350; or
(2)"
Page 84, line 7, following "are":
Insert "(A) licensed under a restaurant or eating
place license issued under AS 04.09.210 or a seasonal
restaurant or eating place tourism license issued
under AS 04.09.350; or
(B)"
Page 89, line 7, following "a":
Insert "restaurant or eating place license issued
under AS 04.09.210, seasonal restaurant or eating
place tourism license issued under AS 04.09.350, or"
Page 109, line 5, following "a":
Insert "restaurant or eating place license under
AS 04.09.210, seasonal restaurant or eating place
tourism license under AS 04.09.350, or"
Page 112, line 27, following "premises":
Insert "(A) licensed under a restaurant or eating
place license issued by the Alcoholic Beverage Control
Board under AS 04.09.210 or seasonal restaurant or
eating place tourism license issued by the Alcoholic
Beverage Control Board under AS 04.09.350; or
(B)"
SENATOR KIEHL explained that Amendment 8 would provide some
streamlining. The language in [CSSB 52(L&C)] said that the only
basic license type that also needed a permit to engage in the
baseline activity was the REPL. Under Amendment 8, an
establishment that served food, beer, and wine would not need a
restaurant eating place permit on top of the REPL. Any other
licensee who wants to serve food and have people under the age
of 21 in for the purpose of eating would still need a permit.
However, a business with a baseline brewery license without a
tasting room and not selling directly to the public does not
need a permit on top of the brewery license, he said.
CHAIR HUGHES asked whether this would be an endorsement.
1:47:51 PM
SENATOR MICCICHE agreed it would be an endorsement. He said that
he supports Amendment 8 because it makes sense and is not
necessary for a business holding a restaurant license [REPL] to
also obtain a restaurant endorsement.
CHAIR HUGHES removed her objection. There being no further
objection, Amendment 8 was adopted.
1:48:33 PM
SENATOR KIEHL moved to adopt Amendment 9, work order 31-
LS0004\S.18, Bruce, 4/24/19.
AMENDMENT 9
OFFERED IN THE SENATE BY SENATOR KIEHL
TO: CSSB 52(L&C)
Page 70, line 23, following "estimate":
Insert ", based on a month selected by the
municipality,"
CHAIR HUGHES objected for discussion purposes.
SENATOR KIEHL said Amendment 9 relates to some municipalities,
including first class, home rule, and unified cities' ability to
petition for additional REPLs based on the population of
visitors or non-resident workers that rely on the municipality
but lie outside their boundaries. He said CSSB 52(L&C) did not
have any definition and he could imagine some extreme scenarios.
For example, the City and Borough of Juneau might claim that
since it has 1.3 million visitors annually, the board should
approve licenses based on that population. Alternately, an
overzealous regulatory board would count Juneau's visitor
population on December 12 without considering the summer
seasonal influx. Amendment 9 would allow municipalities to base
the population on the month it chooses.
1:50:20 PM
SENATOR MICCICHE said that the bill has the right mix, which he
determined after consulting with municipalities on their
experience in considering additional licenses. He deferred to
Anna Brawley to respond.
1:50:57 PM
ANNA BRAWLEY, Title 4 Project Review Coordinator and Senior
Associate, Agnew Beck Consulting, Anchorage, stated that she is
neutral on Amendment 9. Although she understands the intent, it
would ensure the municipalities would have discretion over the
population estimate to use and to consider a specific timeframe.
She said that the language does not specify that it needs to be
a daily estimate but leaves the burden or the discretion to the
municipality to prepare the petition in the way that best
represents their interest. Certainly, the board could put more
restrictions on the petition, she said. However, as the statute
is currently written, the intent is to give that control to the
municipalities. She said that it would also allow municipalities
to use an annual estimate. She said that she leaves it to the
committee to decide. She clarified that Amendment 9 is not
inconsistent with the bill's goal, but it is not necessary.
1:52:15 PM
SENATOR KIEHL said that this is just intended to rule out the
ridiculous. He said Amendment 9 makes sense but he also
appreciates the sponsor's intent to leave as much as possible up
to municipalities. Ultimately, he said his preference is to put
guidelines in statute.
CHAIR HUGHES said that having the discussion reflected in the
record is important. She offered her belief that the bill would
allow the municipality to make that case. She opined that this
discussion would be helpful to keep the board from being
overbearing on this issue.
SENATOR MICCICHE said he did not support Amendment 9. He related
that he worked with the City of Wasilla and the City of Soldotna
and they represented other municipalities on the language. He
offered his belief that it constitutes the right mix without
tying either side's hands to become too specific in the
application process.
CHAIR HUGHES maintained her objection.
1:53:32 PM
A roll call vote was taken. Senator Kiehl voted in favor of
Amendment 9 and Senators Reinbold (via teleconference),
Micciche, and Hughes voted against it. Therefore, Amendment 9
failed by a 1:3 vote.
1:54:24 PM
SENATOR KIEHL moved to adopt Amendment 10, work order 31-
LS0004\S.19, Bruce, 4/24/19.
AMENDMENT 10
OFFERED IN THE SENATE BY SENATOR KIEHL
TO: CSSB 52(L&C)
Page 69, lines 20 - 26:
Delete ". The [, THE] board may not approve the
relocation unless, at the time of application, the
existing number of issued licenses of the type under
consideration for relocation located within the
borough exceeds the maximum allowed under (a) of this
section, and the governing bodies of both the borough
and the incorporated city approve the relocation. The
board may allow not more than three relocations into
each city [IN A BOROUGH] under this subsection each
decade. In this subsection, "decade" means each 10-
year period beginning April 1 in a year ending in
zero."
Insert "[, THE BOARD MAY NOT APPROVE THE
RELOCATION UNLESS THE GOVERNING BODIES OF BOTH THE
BOROUGH AND THE INCORPORATED CITY APPROVE THE
RELOCATION]. The board may allow not more than three
relocations into each incorporated city [IN A BOROUGH]
under this subsection each decade. The board may
approve a relocation under this subsection only if
(1) the incorporated city
(A) serves as a center for commercial
activity within and outside the boundaries of the city
by providing goods and services to a population that
is greater than the permanent resident population
within the boundaries of the city;
(B) maintains a local law enforcement
department; and
(C) at the time of the application, meets
or exceeds the maximum limit under (a) of this section
for the type of license under consideration for
relocation;
(2) the relocation is in the public
interest; and
(3) the governing bodies of both the
borough and the incorporated city approve the
relocation [IN THIS SUBSECTION, "DECADE" MEANS EACH
10-YEAR PERIOD BEGINNING APRIL 1 IN A YEAR ENDING IN
ZERO]."
Page 69, following line 26:
Insert a new bill section to read:
"* Sec. 50. AS 04.11.400(n) is amended to read:
(n) In this section,
(1) "decade" means a 10-year period
beginning April 1 in a year ending in zero;
(2) "radius" means the circular area or
distance limited by the sweep of a straight line
originating at the proposed licensed premises and
extending outward."
Renumber the following bill sections accordingly.
Page 71, line 14:
Delete "sec. 50"
Insert "sec. 51"
Page 71, line 20:
Delete "sec. 50"
Insert "sec. 51"
Page 115, line 7:
Delete "Sections 166(a) and 167"
Insert "Sections 167(a) and 168"
Page 115, lines 10 - 11:
Delete "81 - 84, 86 - 131, 136 - 139, 141, and
149 - 151"
Insert "82 - 85, 87 - 132, 137 - 140, 142, and
150 - 152"
Page 115, line 14:
Delete "sec. 124"
Insert "sec. 125"
Page 115, line 15:
Delete "sec. 125"
Insert "sec. 126"
Delete "sec. 130"
Insert "sec. 131"
Page 115, line 20:
Delete "sec. 171"
Insert "sec. 172"
Page 115, line 23:
Delete "71, and 166"
Insert "72, and 167"
Page 115, line 25:
Delete "71, and 166"
Insert "72, and 167"
Page 116, line 3:
Delete "sec. 161"
Insert "sec. 162"
Page 116, line 9:
Delete "sec. 161"
Insert "sec. 162"
Page 116, line 15:
Delete "sec. 160"
Insert "sec. 161"
Page 116, line 19:
Delete "sec. 160"
Insert "sec. 161"
Page 116, line 23:
Delete "sec. 160"
Insert "sec. 161"
Page 116, line 26:
Delete "sec. 160"
Insert "sec. 161"
Page 116, line 29:
Delete "sec. 160"
Insert "sec. 161"
Page 117, line 1:
Delete "sec. 160"
Insert "sec. 161"
Page 117, line 4:
Delete "sec. 160"
Insert "sec. 161"
Page 117, line 9:
Delete "sec. 160"
Insert "sec. 161"
Page 117, line 13:
Delete "sec. 160"
Insert "sec. 161"
Page 117, line 17:
Delete "sec. 160"
Insert "sec. 161"
Page 117, line 21:
Delete "sec. 160"
Insert "sec. 161"
Page 117, line 25:
Delete "sec. 160"
Insert "sec. 161"
Page 117, line 29:
Delete "sec. 160"
Insert "sec. 161"
Page 118, line 2:
Delete "sec. 160"
Insert "sec. 161"
Page 119, line 27:
Delete "50, 55, 161, 166(a), 166(c)(8), 167, and
168"
Insert "51, 56, 162, 167(a), 167(c)(8), 168, and
169"
Page 119, line 29:
Delete "Section 165"
Insert "Section 166"
Page 119, line 30:
Delete "secs. 169 and 170"
Insert "secs. 170 and 171"
CHAIR HUGHES objected for discussion purposes.
SENATOR KIEHL explained that his intention was to adjust the
rule for transferring licenses from a borough into a city within
a borough. However, he said the language in Amendment 10 is not
written to accomplish that goal. He said that in the version of
the bill that initially came to the committee, [CSSB 52(L&C)],
the only opportunity to do so would be if the balance of the
borough has grandfathered licenses above the population quota
cap. This effectively would mean that local governments would
have one opportunity to move several licenses unless the borough
suffers a population crash. He said he wanted to allow borough
and city governments to agree to move additional licenses into
the city. He said the city and borough assemblies may have
somewhat different goals. Unfortunately, the way Amendment 10 is
written, it would also create a loophole that might flood the
rest of the borough with new licenses. He said that this was not
his intention.
SENATOR KIEHL withdrew Amendment 10.
1:56:43 PM
SENATOR KIEHL moved to adopt Amendment 11, work order 31-
LS0004\S.20, Bruce, 4/25/19.
AMENDMENT 11
OFFERED IN THE SENATE BY SENATOR KIEHL
TO: CSSB 52(L&C)
Page 66, lines 4 - 5:
Delete "and AS 04.11.405"
Insert ", AS 04.11.405, and 04.11.407"
Page 67, line 6, following "section":
Insert ", [AND]"
Page 67, line 7, following "AS 04.11.405":
Insert ", and 04.11.407"
Page 69, line 27:
Delete "a new section"
Insert "new sections"
Page 71, following line 13:
Insert a new section to read:
"Sec. 04.11.407. Petition for additional brewery
retail, winery retail, and distillery retail licenses
for certain local governing bodies. (a) A first class
city, a home rule city, or a unified municipality may
submit a resolution to the board, adopted by its
legislative body, petitioning the board for the
issuance of additional brewery retail licenses under
AS 04.09.310, winery retail licenses under
AS 04.09.320, and distillery retail licenses under
AS 04.09.330 that exceed the limits under
AS 04.11.400(a) in accordance with this section.
(b) The board, following a public hearing, may
issue one or more additional brewery retail licenses
under AS 04.09.310, winery retail licenses under
AS 04.09.320, and distillery retail licenses under
AS 04.09.330, within the boundaries of the
municipality, if the board finds that
(1) the municipality
(A) serves as a center for commercial
activity within and outside the boundaries of the
municipality by providing goods and services to a
population that is greater than the permanent resident
population within the boundaries of the municipality;
(B) maintains a local law enforcement
department;
(C) exercises planning or land-use
authority; and
(D) at the time of the petition, meets or
exceeds the maximum limit under AS 04.11.400(a) for
brewery retail licenses issued under AS 04.09.310,
winery retail licenses issued under AS 04.09.320, or
distillery retail licenses issued under AS 04.09.330;
(2) the number of additional licenses does
not exceed the number of additional licenses requested
by the municipality in the petition; and
(3) granting the additional licenses is in
the public interest.
(c) A resolution submitted by a municipality
under (a) of this section must include
(1) information demonstrating that the
petitioner meets the criteria in (b) of this section;
(2) the most recent estimate, based on a
month selected by the municipality, of the number of
people who claim residency or work outside the
boundaries of the municipality and who are served by
the municipality, including the
(A) population located outside the
boundaries of the municipality that relies on the
municipality for goods and services;
(B) visitor population; and
(C) nonresident worker population that
resides in the municipality, but that is not counted
in the latest federal or state census for the
municipality;
(3) the number of existing brewery retail
licenses, winery retail licenses, and distillery
retail licenses
(A) within the boundaries of the
municipality;
(B) in a geographic area that the
municipality serves under (2) of this subsection;
(4) information showing that the number of
additional licenses requested does not exceed more
than one brewery retail, one winery retail, and one
distillery retail license for each 9,000 population of
the population identified under (2) of this
subsection; and
(5) additional justification, as necessary,
to demonstrate that granting of the additional
licenses is in the public interest.
(d) If the board grants a petition for
additional brewery retail, winery retail, and
distillery retail licenses under this section to a
municipality, the board may not authorize additional
brewery retail, winery retail, or distillery retail
licenses to the same municipality under this section
for the following three years."
Page 119, line 27:
Delete "50"
Following "Act":
Insert ", and AS 04.11.405, enacted by sec. 50 of
this Act,"
CHAIR HUGHES objected for discussion purposes.
1:56:50 PM
SENATOR KIEHL explained that Amendment 11 would create an
opportunity based on the same model as the petition for
additional REPLs, which would apply to the brewery, winery, and
distillery retail licenses. He explained that he was offering
this amendment because the population quota is set so high that
it will serve to close off opportunities for innovation and
entrepreneurship. He said that setting it at one license per
9,000 is very limiting. He pointed out that the community of
Juneau is already over that cap for breweries. He offered his
belief that no one would suggest that the city is overrun with
brewery retail operations. He remarked that he is not a big fan
of quotas. He said that people effectively have a property right
that gets in the way of the ability to use regulations related
to life, health, and safety.
He explained that Amendment 11 is meant to keep the cap and use
the same system for REPLs by letting municipalities consider
tourist population, nonresident workers, and people who use the
municipality as a hub. In doing so, local governments could
consider creating a few more opportunities to open these types
of businesses. He pointed out that a person in Juneau can buy a
beer at a package store, a bar, or a restaurant, which
essentially gives them one chance to buy one beer for every 750
people. However, to suggest that buying a beer at a brewery is a
dozen times riskier to life, health, and safety does not
resonate.
SENATOR KIEHL stated that he has discussed a compromise that the
sponsor has crafted, but he does not wish to hold up the bill.
He said he very reluctantly will withdraw Amendment 11 at the
request of two breweries in his community and the sponsor.
CHAIR HUGHES said that it is worth considering at some point in
the future since it is a new model. She stated that Amendment 11
has been withdrawn.
2:00:35 PM
SENATOR MICCICHE moved to adopt Amendment 12, work order 31-
LS0004\S.23, Bruce, 4/24/19.
AMENDMENT 12
OFFERED IN THE SENATE BY SENATOR MICCICHE
TO: CSSB 52(L&C)
Page 13, line 21, following "with":
Insert "(d) or"
CHAIR HUGHES objected for discussion purposes.
SENATOR MICCICHE explained that Amendment 12 is a technical
amendment change caught by the bill drafter. This ensures that
the holder of a REPL must comply with subsection (d) and (e);
however, subsection (e) is the only item in the bill.
CHAIR HUGHES removed her objection. There being no further
objection, Amendment 12 was adopted.
2:01:09 PM
SENATOR REINBOLD commented that Linda Bruce [attorney,
Legislative Legal Services,], and the sponsor's office have been
excellent to work with.
2:01:29 PM
SENATOR REINBOLD moved to adopt Amendment 13, work order 31-
LS0004\S.24, Bruce, 4/25/19.
AMENDMENT 13
OFFERED IN THE SENATE BY SENATOR REINBOLD
TO: CSSB 52(L&C)
Page 7, line 29, through page 8, line 5:
Delete all material.
Page 11, lines 13 - 19:
Delete all material.
Page 29, lines 19 - 24:
Delete all material.
Page 50, lines 6 - 9:
Delete all material and insert:
"(a) Except as provided in AS 04.11.020, a
person may not knowingly
(1) [MANUFACTURE, SELL, OFFER FOR SALE,]
possess for [SALE OR] barter, traffic in, or barter an
alcoholic beverage unless under license or permit
issued under this title; or
(2) manufacture an alcoholic beverage, sell
an alcoholic beverage, offer an alcoholic beverage for
sale, or possess an alcoholic beverage for sale in an
area that has adopted a local option under
AS 04.11.491 unless under license or permit issued
under this title."
Page 50, line 26:
Delete "04.09.070, 04.09.140, 04.09.145,
04.09.370, or 04.09.380"
Insert "04.09.140, or 04.09.370"
Page 87, line 14:
Delete "04.09.070, 04.09.145, 04.09.370,
04.09.380,"
Insert "04.09.370,"
Page 98, line 25:
Delete "04.09.070, 04.09.145, 04.09.370,
04.09.380,"
Insert "04.09.370,"
Page 99, lines 3 - 4:
Delete "04.09.070, 04.09.145, 04.09.370,
04.09.380,"
Insert "04.09.370,"
Page 99, line 12:
Delete "04.09.070, 04.09.145, 04.09.370,
04.09.380,"
Insert "04.09.370,"
Page 99, lines 24 - 25:
Delete "04.09.070, 04.09.145, 04.09.370,
04.09.380,"
Insert "04.09.370,"
Page 99, line 31:
Delete "04.09.070, 04.09.145, 04.09.370,
04.09.380, AS 04.09.750,"
Insert "04.09.370, 04.09.750,"
Page 100, lines 8 - 9:
Delete "04.09.070, 04.09.145, 04.09.370,
04.09.380,"
Insert "04.09.370,"
Page 100, lines 11 - 12:
Delete "04.09.070, 04.09.145, 04.09.370,
04.09.380,"
Insert "04.09.370,"
Page 102, line 12:
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04.09.380,"
Insert "04.09.370,"
Page 113, lines 7 - 8:
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04.09.380,"
Insert "04.09.370,"
CHAIR HUGHES objected for discussion purposes.
2:01:47 PM
SENATOR REINBOLD explained that Amendments 13 and 14 were
brought to her by the Department of Law. They relate to local
option areas and make it easier for prosecutors to catch bad
actors.
2:02:36 PM
JOHN SKIDMORE, Director, Criminal Division, Central Office,
Department of Law, Anchorage, stated that the Department of Law,
Criminal Division, is not taking any opinion on the bill
overall. However, some sections of Title 4 address local option
areas and the department takes it very seriously when people
make alcohol or import alcohol to local option areas because it
is a criminal offense.
He said that some revisions in the bill made it difficult for
the DOL because it swept in some of the bootlegging or
manufacturing conduct. He said that the department worked with
the sponsor and Senator Reinbold on the language in Amendment
13. It would remove local option provisions from this bill and
place them back into the statutes where the DOL is accustomed to
addressing them. It will also allow the department to continue
to prosecute illegal bootlegging or manufacturing. He said the
Department of Law supports Amendment 13.
2:04:20 PM
SENATOR KIEHL asked whether the bill increases the penalty for
manufacturing or bootlegging alcohol to a class C felony.
MR. SKIDMORE answered that it would continue to be a class C
felony.
SENATOR MICCICHE said he cosponsored and supports Amendment 13.
CHAIR HUGHES removed her objection. There being no further
objection, Amendment 13 was adopted.
2:05:16 PM
SENATOR REINBOLD moved to adopt Amendment 14, work order 31-
LS0004\S.25, Bruce, 4/25/19.
AMENDMENT 14
OFFERED IN THE SENATE BY SENATOR REINBOLD
TO: CSSB 52(L&C)
Page 94, lines 21 - 31:
Delete all material and insert:
"(a) A person may not use a common carrier to
transport alcoholic beverages into an area that has
restricted the sale of alcoholic beverages under
AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2)
unless
(1) the common carrier is approved by the
board under AS 04.09.750(b);
(2) the shipping container holding the
alcoholic beverages is clearly labeled as containing
alcoholic beverages [WITH LETTERS THAT CONTRAST IN
COLOR TO THE SHIPPING CONTAINER AND THAT ARE AT LEAST
TWO INCHES IN HEIGHT]; and
(3) [(2)] an itemized invoice showing the
quantity and purchase value of distilled spirits, [OF]
wine, and brewed [OF MALT] beverages is attached to
the outside of the shipping container."
CHAIR HUGHES objected for discussion purposes.
SENATOR REINBOLD said that the bill lists some things that were
allowed but the bill was not explicit in describing conduct that
is not allowed. She explained that Amendment 14 would clarify
that a person cannot use a common carrier to transport alcoholic
beverages into a restricted area unless the common carrier is
approved by the board under AS 04.09.750(b). She said that lines
8-14 are clarifying language.
2:06:12 PM
MR. SKIDMORE directed attention to page 94 of the bill. He said
he agreed with Senator Reinbold's description of Amendment 14.
In addition to the conduct of creating or manufacturing alcohol
in the local option areas, some individuals will travel to a
local option area by common carrier, such as a commercial
airline. Many interdiction efforts prevent people from bringing
alcohol to a local option community, he said. He explained that
the language in SB 52 was written to indicate conduct that is
allowed, but criminal law tends to focus on what is illegal for
enforcement purposes. He said that Amendment 14 would clarify
that if someone is carrying alcohol in via a common carrier, the
department can take law enforcement action against it. The
department supports Amendment 14, he said.
SENATOR MICCICHE said he is a cosponsor of Amendment 14 and
supports it.
CHAIR HUGHES asked to be added as cosponsor of Amendment 14.
CHAIR HUGHES removed her objection. There being no further
objection, Amendment 14 was adopted.
2:08:02 PM
SENATOR MICCICHE moved to adopt Amendment 15, work order 31-
LS0004\S.26, Bruce, 4/25/19.
AMENDMENT 15
OFFERED IN THE SENATE BY SENATOR MICCICHE
TO: CSSB 52(L&C)
Page 66, line 1:
Following "may":
Insert "delegate to the director the authority to
impose"
Delete "impose"
CHAIR HUGHES objected for discussion purposes.
SENATOR MICCICHE explained that Amendment 15 also supports
Senator [Reinbold's] previous amendment. Although the board can
currently impose conditions, Amendment 15 would allow the board
to delegate its authority to the director to impose conditions.
He explained that permit applications sometimes are submitted
just prior to an event and the board may not have the ability to
meet. He offered his belief that Senator Reinbold expressed
interest in streamlining the process while keeping as much
control with the board as possible. This amendment would
accomplish both of those objectives, he said.
CHAIR HUGHES removed her objection. There being no further
objection, Amendment 15 was adopted.
2:09:29 PM
SENATOR REINBOLD thanked the departments, organizations, and
sponsor for their work on the bill.
2:10:56 PM
SENATOR MICCICHE echoed Senator Reinbold's thanks.
2:11:35 PM
CHAIR HUGHES characterized the process as somewhat of a
tightrope act that has come together. She solicited the will of
the committee on SB 52.
2:11:49 PM
SENATOR MICCICHE moved to report the committee substitute (CS)
for SB 52 from committee with individual recommendations and
attached fiscal note(s).
[The committee treated the foregoing motion as withdrawn.]
2:12:27 PM
At-ease.
2:12:42 PM
CHAIR HUGHES reconvened the meeting and advised that a corrected
motion would be read.
2:12:46 PM
SENATOR MICCICHE moved to report SB 52, work order 31-LS0004\S
[as amended] with individual recommendations and attached fiscal
note(s). There being no objection, CSSB 52(JUD) was reported
from the Senate Judiciary Standing Committee.
CHAIR HUGHES noted that the Legislative Legal Research Services,
Legislative Affairs Agency was authorized to make any technical
and conforming changes necessary to adopt the amendments.
| Document Name | Date/Time | Subjects |
|---|---|---|
| CSHB 12(JUD) Version G.pdf |
SJUD 4/26/2019 1:30:00 PM |
HB 12 |
| SB052 SUPPORTING DOC - REQ FOR INFO - KIEHL 04.24.19.pdf |
SJUD 4/26/2019 1:30:00 PM |
SB 52 |
| SB052 SUPPORTING DOC - ABC REPT FORM EXAMPLE.pdf |
SJUD 4/26/2019 1:30:00 PM |
SB 52 |
| SB052 SUPPORTING DOC - ENFORCEMENT REPT.pdf |
SJUD 4/26/2019 1:30:00 PM |
SB 52 |
| Memorandum from Legal Services 4/25/2019.pdf |
SJUD 4/26/2019 1:30:00 PM |
SJR 9 |
| Memorandum from Legal Services 4/24/2019.pdf |
SJUD 4/26/2019 1:30:00 PM |
SJR 9 |
| CSSJR 9 Ver E.pdf |
SJUD 4/26/2019 1:30:00 PM |
SJR 9 |
| CSSJR 9 Explanation of Changes from Version S to E.pdf |
SJUD 4/26/2019 1:30:00 PM |
SJR 9 |
| CSSB 52(L&C) Amendments for S.JUD.pdf |
SJUD 4/26/2019 1:30:00 PM |
SB 52 |