02/14/1995 01:30 PM Senate L&C

 SL&C - 2/14/95                                                                
                                                                               
              SB 78 ALCOHOL SALES IN HOTEL ROOMS                             
                                                                               
 SENATOR BERT SHARP, prime sponsor of SB 78, gave the following               
 testimony.  Currently the Alcohol Beverage Control (ABC) Board is             
 not permitted to allow alcoholic beverages to be stocked inside               
 hotel or motel rooms.  SB 78 seeks to authorize the ABC Board to              
 allow beverage dispensary license holders the right to allow self-            
 serve liquors inside hotel or motel rooms.  Alcoholic beverages               
 would be stocked in lockable refrigerators and placed in the rooms.           
 Once the hotel or motel staff has determined a registering guest to           
 be at least 21 years of age, a key to the lock unit can be issued,            
 along with the room key.  SB 78 was introduced at the request of              
 the Alaska Hotel and Motel Association and the Alaska Cabaret Hotel           
 Restaurant and Retailers Association.  The 17th Alaska Legislature            
 passed an identical bill (SB 183) which was vetoed by the Governor.           
 He added the committee packet contains a zero fiscal note from the            
 ABC Board, and several letters urging support.  He noted the ABC              
 Board maintains a neutral position on the legislation.                        
                                                                               
 SENATOR KELLY asked if SB 78 is identical to the version of SB 183            
 which was vetoed by the Governor.  SENATOR SHARP replied it is, to            
 the best of his knowledge.  There were no further questions of the            
 sponsor.                                                                      
                                                                               
 Number 170                                                                    
                                                                               
 DENNIS LAVEY, President of the Alaska Hotel-Motel Association,                
 testified in support of SB 78.  He said refreshment centers, or               
 mini-bars, are a way of life in the industry today.  Customers are            
 accustomed to these practices in 39 states and several states offer           
 this practice as a local option.  Most foreign countries also allow           
 the use of mini-bars.  People often prefer to stay inside of their            
 hotel rooms in an unfamiliar city and to use room service.  Seventy           
 percent of the sales from the mini-bars are nonalcohol, however the           
 sale of alcohol has a higher profit margin.                                   
                                                                               
 BILL DUGDALE, General Manager of the Westmark Anchorage Hotel and             
 Vice President of the Alaska Hotel-Motel Association, endorsed SB
.  He felt the bill would allow hotels and motels to provide a              
 service expected by the travelling public.                                    
                                                                               
 SENATOR KELLY asked Mitch Gravo if a business would already have to           
 have a liquor license to participate in this practice.  He replied            
 affirmatively.                                                                
                                                                               
 SENATOR TORGERSON moved SB 78 out of committee with individual                
 recommendations.  SENATOR SALO objected.  SENATORS MILLER,                    
 TORGERSON and KELLY voted in favor of the motion, SENATOR SALO                
 voted against.