04/10/2012 01:30 PM Senate LABOR & COMMERCE

                SB 128-BREWERY LICENSES/PERMITS                                                                             
                                                                                                                                
1:47:32 PM                                                                                                                    
CHAIR EGAN announced consideration of SB 128.                                                                                   
                                                                                                                                
SENATOR MENARD moved to adopt CSSB 128 ( ), version 27-LS0647\D.                                                                
                                                                                                                                
CHAIR EGAN objected for discussion purposes.                                                                                    
                                                                                                                                
GENEVIEVE  WOTJUSIK, staff  to Senator  Lesil McGuire,  explained                                                               
that  this version  clarifies some  things that  were brought  to                                                               
their attention  in committee  last week. The  chairs at  the bar                                                               
and  live entertainment  would only  happen during  fives special                                                               
events that are permitted per year.  Changing the hours from 8 to                                                               
10 would be  year round. It also adds that  each brewery employee                                                               
must  have a  Tams card  (alcohol awareness  training). Breweries                                                               
are pretty  new to the  state and  that was not  required before,                                                               
because the statute is old.                                                                                                     
                                                                                                                                
CHAIR EGAN withdrew his objection.                                                                                              
                                                                                                                                
SENATOR PASKVAN joined the committee.                                                                                           
                                                                                                                                
CHAIR EGAN  asked Senator Paskvan  if he had any  questions since                                                               
he had talked about the Tams cards.                                                                                             
                                                                                                                                
SENATOR PASKVAN replied that his concern had been cured.                                                                        
                                                                                                                                
SENATOR  MENARD asked  if a  brewery would  be held  to the  same                                                               
scrutiny  when   it  holds  an   event  as  a   regular  licensed                                                               
establishment.                                                                                                                  
                                                                                                                                
MS. WOTJUSIK answered yes.                                                                                                      
                                                                                                                                
1:50:09 PM                                                                                                                    
SASSAN MOSSANEN, Denali Brewing  Company, Talkeetna, said he sent                                                               
a letter  of support  to the  committee on SB  128 and  wanted to                                                               
read it. The letter related that  their tasting room is closed by                                                               
6 p.m. for seven months of  the year, but in the remaining months                                                               
it is critical  for them to be able to  serve small quantities of                                                               
product to  interested folks. By  providing a  quality experience                                                               
for  their guests,  they bring  attention to  what a  great state                                                               
Alaska is to  visit. Without exception, he said,  they don't have                                                               
a single evening during the summer  season where they do not have                                                               
to turn  guests away.  Many of the  folks are  local, hardworking                                                               
Alaskans that  take advantage of the  longer days to work  past 8                                                               
p.m. and  would prefer  to support their  local brewery.  Some of                                                               
them  have  driven  two  hours  from  Anchorage  to  enjoy  their                                                               
favorite  beer,  only  to  be   told  "no."  The  nuance  of  the                                                               
difference between a  brew pub and a brewery escape  many of them                                                               
He read further:                                                                                                                
                                                                                                                                
     Equally important  are the visitors  to the  state that                                                                    
     are  here to  experience  genuine Alaskan  hospitality.                                                                    
     People from  all over  the world  come to  Talkeetna to                                                                    
     experience the  mountains, rivers, and create  a flavor                                                                    
     that  can only  be found  here. Sadly,  after a  day of                                                                    
     fishing  or exploring  our backyard,  we are  forced to                                                                    
     hastily  usher these  folks out  of our  establishment.                                                                    
     There is  no way to  gain support for a  local industry                                                                    
     that has a  long tradition of bringing  visitors to our                                                                    
     state and  employing many.  Manufacturing in  Alaska is                                                                    
     not easy.  SB 128  gives small business  owners further                                                                    
     freedom to manage their business responsibly.                                                                              
                                                                                                                                
MR. MOSSANEN said he was available to answer questions.                                                                         
                                                                                                                                
SENATOR MENARD  said she  resides in the  Mat-Su Borough  that is                                                               
famous  for  the  Alaska  State   Fair  and  that  several  other                                                               
communities have  a fair, too.  She asked if this  special events                                                               
permit would  allow a brewery  to set up an  off-premise location                                                               
in which to vend their beer.                                                                                                    
                                                                                                                                
MR. MOSSANEN  replied that Denali  Brewing had been  the official                                                               
brewery  of the  Alaska  State Fair  last year  and  will be  the                                                               
official  brewery  again  this  year.   The  way  they  win  that                                                               
distinction is  by winning  the Mat-Su  Beer Festival.  He didn't                                                               
know if this would  enable them to set up a  vending booth at the                                                               
Fair. Their  interest has  been primarily  to work  through their                                                               
distributor. The Alaska  State Fair, over the course  of the last                                                               
two  years,  has been  putting  a  genuine effort  into  bringing                                                               
attention to  the local  breweries in  Alaska and  Denali Brewery                                                               
intends to continue using that avenue.                                                                                          
                                                                                                                                
1:56:31 PM                                                                                                                    
KAREN   BERGER,  part-owner,   Homer   Brewing  Company,   Homer,                                                               
supported  SB 128.  They definitely  know the  difference between                                                               
being  a brewery  and a  brew  pub, she  said, and  they are  not                                                               
intending to go into competition  with their customers, which are                                                               
the finer  eating and  drinking establishments  in the  town. She                                                               
believed that  breweries have  enhanced all  the licenses  in the                                                               
state  by providing  locally made  product with  "a whole  lot of                                                               
soul."                                                                                                                          
                                                                                                                                
She  said that  breweries have  become an  economic force  in the                                                               
state and that  having a special events permit would  give them a                                                               
chance to showcase  their operation and allow the  public to have                                                               
a  more personal  connection to  these businesses.  All are  non-                                                               
smoking  establishments.   She  couldn't   imagine  any   of  the                                                               
breweries in  the state  not having their  key personnel  being a                                                               
card-carrying member of Tams card.                                                                                              
                                                                                                                                
SENATOR MENARD  asked how  many new  breweries have  opened since                                                               
1996.                                                                                                                           
                                                                                                                                
MS.  BERGER  replied  about  13  or 15  and  they  had  all  been                                                               
successful.                                                                                                                     
                                                                                                                                
2:00:59 PM                                                                                                                    
ZACH  HENRY, St.  Elias Brewing  Company, Soldotna,  supported SB
.  He  said  they  have  a  "restaurant  eating  place  public                                                               
convenience license"  and operate like  a brew pub with  beer and                                                               
wine on site and no hard  liquor. He thought their friends across                                                               
the  state that  own breweries  should be  able to  operate their                                                               
businesses  until  10 p.m.  and  didn't  see the  special  events                                                               
permit five times a year as any competition to them.                                                                            
                                                                                                                                
MS. WOTJUSIK clarified that there are  10 brew pubs, 1 pub and 16                                                               
breweries in the state.                                                                                                         
                                                                                                                                
2:02:58 PM                                                                                                                    
ALICE   KERKVLIET,   owner,   Michael's   Restaurant,   Soldotna,                                                               
supported SB 128. Her two brewery  neighbors made her aware of SB
;  they  are  good  companies  doing  good  things  for  their                                                               
community, running  their businesses responsibly. She  didn't see                                                               
a problem with them having a special events permit.                                                                             
                                                                                                                                
CHAIR EGAN stated that the amendment was adopted.                                                                               
                                                                                                                                
SENATOR MENARD moved to report  CSSB 128( ), labeled 27-LS0647\D,                                                               
from committee to the next  committee of referral with individual                                                               
recommendations and  attached fiscal note as  amended. There were                                                               
no objections, and it was so ordered.