04/14/2000 09:08 AM Senate FIN

     SENATE BILL NO. 280                                                                                                        
     "An Act relating to licensing common carriers to                                                                           
     dispense alcoholic beverages; and providing for an                                                                         
     effective date."                                                                                                           
                                                                                                                                
DAVE GREY, Staff,  Senator Jerry Mackie, stated  that the SB
  speaks  to  the  common  carriers  beverage  dispensary                                                                    
licenses  being modified  as requested  by Alaska  Airlines.                                                                    
He  noted  that  each  of  the 89  carriers  in  the  Alaska                                                                    
Airlines fleet  are required to  purchase a  liquor license.                                                                    
Alaska Airlines  has requested  that the  Legislature review                                                                    
the issue  and offer  legislation to  reduce the  fees which                                                                    
they suffer  in the public  interest.  If the  proposed bill                                                                    
becomes law, Alaska Airlines will  still pay more in fees to                                                                    
Alaska than it pays in any other state.                                                                                         
                                                                                                                                
DOUG  GRIFFIN,  (Testified  via  Teleconference),  Director,                                                                    
Alcohol Beverage  Control Board (ABC),  Anchorage, testified                                                                    
that  Alaska  Airlines had  approached  the  ABC Board  last                                                                    
summer regarding the issue.   Alaska Airlines has shown that                                                                    
they want  to be responsible and  not caught up in  any kind                                                                    
of non-licensing bind.   The Board recognizes that  only a ¼                                                                    
of  Alaska  Airlines fleet  is  operating  in the  State  of                                                                    
Alaska at  any given time.   The ABC  Board does not  have a                                                                    
position on the concern at this  time.  The Board has worked                                                                    
with the airlines regarding the concern.                                                                                        
                                                                                                                                
Mr. Griffin  recommended providing an average  of the number                                                                    
of  aircraft flying  in  the  State and  using  that as  the                                                                    
applicable number.   He  added that the  ABC Board  has done                                                                    
everything that  they could do administratively  to ease the                                                                    
paper work burden.                                                                                                              
                                                                                                                                
Mr. Griffin pointed  out that the fiscal  note does indicate                                                                    
a  loss  of  revenue.    In terms  of  fairness,  the  Board                                                                    
believes that  the loss of  revenue would level  the playing                                                                    
field in this situation.                                                                                                        
                                                                                                                                
Co-Chair  Torgerson  stated  that   he  supported  taking  a                                                                    
"higher"   number    average,   perhaps   taking    from   a                                                                    
determination  of the  summer flights.     He  asked if  any                                                                    
cruise ship  lines would  fall under  the guidelines  of the                                                                    
bill.                                                                                                                           
                                                                                                                                
Mr. Griffin replied that current  drafting of the bill would                                                                    
not affect any of the cruise ships.                                                                                             
                                                                                                                                
Co-Chair Torgerson  stated that  the bill  would be  HELD in                                                                    
Committee  for further  consideration  and determination  of                                                                    
the high number.