Legislature(2021 - 2022)ADAMS 519

03/30/2022 09:00 AM House FINANCE

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09:04:08 AM Start
09:04:41 AM SB9
11:25:54 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 9 ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG TELECONFERENCED
Heard & Held
-- Public Testimony Limited to 2 Minutes --
+ Bills Previously Heard/Scheduled TELECONFERENCED
CS FOR SENATE BILL NO. 9(FIN)                                                                                                 
                                                                                                                                
     "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."                                                                           
                                                                                                                                
9:04:41 AM                                                                                                                    
                                                                                                                                
Co-Chair Merrick OPENED public testimony.                                                                                       
                                                                                                                                
9:05:06 AM                                                                                                                    
                                                                                                                                
SARAH  OATS,  PRESIDENT AND  CEO,  CHARR,  JUNEAU, spoke  in                                                                    
support  of  the  legislation.  She  had  spoken  with  many                                                                    
legislators over the  previous 2 years about  the bill. Many                                                                    
of their  concerns along with  the concerns from  others had                                                                    
to  do  with  limiting  new businesses.  The  bill  actually                                                                    
provided  significant  growth   opportunities  for  new  and                                                                    
existing businesses.  She did not  think there  was anything                                                                    
wrong  with   trying  to   help  the   existing  hospitality                                                                    
industry, as  it had suffered  immeasurably over the  past 2                                                                    
years.  There were  several things  in the  bill that  would                                                                    
help the  industry to recover and  provide opportunities for                                                                    
the current industry to grow.                                                                                                   
                                                                                                                                
Ms. Oats continued  that she had worked for  the Alcohol and                                                                    
Marijuana  Control Office  (AMCO) for  7.5 years.  Trying to                                                                    
get  things   done  there  was  extremely   challenging,  as                                                                    
Representative Wool  could attest. The bill  would help AMCO                                                                    
streamline  the processes  that helped  existing businesses.                                                                    
She urged members  to focus on the current  industry and the                                                                    
way  in which  the bill  could help  it recover.  There were                                                                    
things  in the  bill  that constituents  did  not like.  She                                                                    
encouraged  members to  pass the  bill as  it was  currently                                                                    
written. She thought  there would be an  opportunity to make                                                                    
adjustments in the future.                                                                                                      
                                                                                                                                
Representative Wool  asked that  if the  bill were  to pass,                                                                    
whether it would be difficult to change the law later.                                                                          
                                                                                                                                
Ms. Oats  responded that  she had been  part of  the project                                                                    
since  its inception  10 years  prior. She  reported working                                                                    
for  the  regulatory agency  at  the  start of  the  process                                                                    
providing an impartial view. The  participants tried to look                                                                    
at  how to  expand  opportunities for  new businesses.  They                                                                    
also  looked at  existing  industry,  public health,  public                                                                    
safety,  and  how  to make  improvements.  The  participants                                                                    
looked to  an omnibus bill, SB  9. There were things  in the                                                                    
bill that  each of  the participants  would want  to change,                                                                    
but SB  9 was a compromise  bill. She thought it  was a good                                                                    
piece of legislation since everyone  disliked portions of it                                                                    
but  were not  completely unhappy  with it.  She noted  that                                                                    
there  were specific  pieces  of the  bill  that people  had                                                                    
expressed concerns  about, mainly  relating to how  it might                                                                    
limit future  businesses. She highlighted the  importance of                                                                    
focusing on  the current industry  that was  still suffering                                                                    
rather than the future industry.                                                                                                
                                                                                                                                
Representative Wool  supported the current industry  and was                                                                    
concerned about it losing footage.                                                                                              
                                                                                                                                
9:11:07 AM                                                                                                                    
                                                                                                                                
PAUL THOMAS,  ALASKA CACHE LIQUOR, JUNEAU,  spoke in support                                                                    
of the bill. There  had been a need to update  Title 4 for a                                                                    
significant amount of  time. The bill was a  good package in                                                                    
which  all sectors  and license  types in  the industry  had                                                                    
contributed. Passing  the bill  would provide  stability for                                                                    
the industry. It would provide  confidence to people looking                                                                    
to get  into the industry  knowing that the rules  would not                                                                    
change as  soon as they invested.  Long-term licensees would                                                                    
be afforded  the confidence to  move forward with  new plans                                                                    
inside a cleaned  up and easier-to-follow set  of rules that                                                                    
supported all kinds  of licenses. It would  not just satisfy                                                                    
individual one-off desires for expansion.                                                                                       
                                                                                                                                
Mr. Thomas continued that every  segment of the industry got                                                                    
something  new  in  the new  stable  environment.  It  would                                                                    
encourage new  business, investment in  existing businesses,                                                                    
new ideas, and  give confidence to all license  types in the                                                                    
industry  to  follow  through  in   their  plans  that  were                                                                    
currently on  hold. It  was something  that had  been sorely                                                                    
missing  in  the previous  10  years.  His segment,  package                                                                    
stores, would  get new opportunities and  much needed clean-                                                                    
up of operations. New sampling  endorsements would allow for                                                                    
his customers to sample products.  New package store tasting                                                                    
permits  would allow  his business  to have  special tasting                                                                    
events.   Endorsements   for   shipping,   delivering,   and                                                                    
repackaging  would help  clean-up language  allowing him  to                                                                    
function inside the  rules more easily. It  would also allow                                                                    
for trying  out new  aspects of  the industry.  Online sales                                                                    
would get some new regulations  which were needed. Up to the                                                                    
current  point allowing  out-of-state businesses  to operate                                                                    
freely without paying taxes,  unlike Alaskan businesses, had                                                                    
crippled Alaskans.  He asked members to  support the current                                                                    
version  of  the  bill,  with  its more  than  10  years  of                                                                    
refinement.                                                                                                                     
                                                                                                                                
Representative Rasmussen asked  if there was a  law in place                                                                    
that would  disallow a sale  if 2  people came into  a store                                                                    
and only 1 of them had an I.D.                                                                                                  
                                                                                                                                
Mr. Thomas  replied that  he would sell  to the  person with                                                                    
appropriate identification.                                                                                                     
                                                                                                                                
9:13:55 AM                                                                                                                    
                                                                                                                                
STANLEY   FILLER,    OWNER,   ERNIE'S   BAR,    SITKA   (via                                                                    
teleconference), had owned  his bar since 1965.  He had seen                                                                    
significant changes to  Title 4 over the  previous 50 years.                                                                    
He supported SB 9 as  written. Bars and restaurants in Sitka                                                                    
had experienced  a difficult time  during the  pandemic. The                                                                    
changes in SB 9 would  provide stability and consistency for                                                                    
his   industry   and   streamline  processes   that   helped                                                                    
businesses.  He urged  members to  support  moving the  bill                                                                    
from committee to the House Floor for passage.                                                                                  
                                                                                                                                
Co-Chair  Merrick  indicated  Representative  Rasmussen  and                                                                    
Vice-Chair Ortiz had joined the meeting earlier.                                                                                
                                                                                                                                
9:15:21 AM                                                                                                                    
                                                                                                                                
DARWIN  BIWER, OWNER,  DARWIN'S THEORY  BAR, ANCHORAGE  (via                                                                    
teleconference),  spoke in  support of  SB 9.  He noted  the                                                                    
compromises by all stake holders  to the Title 4 rewrite. He                                                                    
commented  that   it  had  been  difficult   to  obtain  the                                                                    
compromise bill and  noted how fragile it was.  There were 9                                                                    
categories of  participants that were included  in the bill:                                                                    
law enforcement, public  health departments, municipalities,                                                                    
breweries,  wineries, distilleries,  package stores,  liquor                                                                    
distributors,  liquor  licensing  members of  Alaska  CHARR.                                                                    
Getting all of  the different factions to agree  was a major                                                                    
factor in  the 10-year  legislation project. Each  aspect of                                                                    
the bill  was vigorously  debated. The  mindset was  to plan                                                                    
for  30 years  rather than  today.  He was  chairman of  the                                                                    
board for Alaska  CHARR during the crafting of  the bill and                                                                    
was greatly involved in the  discussions related to Title 4.                                                                    
He discouraged any amendments to  the bill. He asked members                                                                    
to pass the bill in its  current form, as it was too fragile                                                                    
to make changes.                                                                                                                
                                                                                                                                
9:17:33 AM                                                                                                                    
                                                                                                                                
ELIZABETH  RIPLEY, MAT-SU  HEALTH  FOUNDATION, WASILLA  (via                                                                    
teleconference),  spoke  in  strong  support of  SB  9.  She                                                                    
commented that  it was well  past time for Alaska  to update                                                                    
its alcohol laws.  For more than ten  years her organization                                                                    
had worked  hard with many  partners, including  the alcohol                                                                    
industry. Senate  Bill 9  represented compromises  that were                                                                    
good for  all Alaskans. Research  and data were core  to the                                                                    
work  of the  foundation.  She reported  that  more than  40                                                                    
percent  of the  arrests in  the state  involved alcohol  or                                                                    
other substances, and 60 percent  of Alaskans reported being                                                                    
negatively affected by  someone else's drinking. Year-after-                                                                    
year  the  foundation  heard the  same  story:  Alcohol  and                                                                    
substance misuse  were ranked by  the community as  the most                                                                    
critical health issue to address in the Mat-Su.                                                                                 
                                                                                                                                
Ms.  Ripley continued  that the  bill supported  responsible                                                                    
alcohol use  by adults,  reduced under age  consumption, and                                                                    
supported  better  enforcement  of  Alaska's  alcohol  laws.                                                                    
While  the   foundation's  interest  was   primarily  public                                                                    
health,  the   bill  also  had   many  benefits   for  local                                                                    
businesses.  A  sound economy  was  an  important aspect  of                                                                    
every  community. The  bill as  currently written  supported                                                                    
growth and  flexibility while continuing to  regulate outlet                                                                    
density  because more  outlets meant  more harm  in a  state                                                                    
that already paid a high  cost for alcohol misuse. She urged                                                                    
members  to  move  SB  9  forward for  the  benefit  of  all                                                                    
Alaskans.                                                                                                                       
                                                                                                                                
9:19:27 AM                                                                                                                    
                                                                                                                                
SHERRY   STEAD,   GLACIER    RIDGE   BREWING,   HOMER   (via                                                                    
teleconference), asked for an amendment  to keep the current                                                                    
statutes, AS  04.11.130, AS 04.11.140, and  AS 04.11.170 for                                                                    
brewery,  winery, and  distillery licenses  with 1  per 3000                                                                    
population  (1 license  for 1  manufacturer  with a  tasting                                                                    
room)  and all  current restrictions.  She opined  breweries                                                                    
were tap rooms. Current statutes  had allowed a thriving and                                                                    
successful business model for  Alaska craft industry growth.                                                                    
She asserted  there was  more room  for more  growth. Senate                                                                    
Bill 9  would allow  hundreds of new  business opportunities                                                                    
in every community  in Alaska. She urged  local control over                                                                    
the current  remaining licenses and  discouraged legislating                                                                    
out  new   opportunities  for  future  business   growth.  A                                                                    
community had  to approve a  new license  application before                                                                    
going before  the state board.  If a community did  not want                                                                    
an additional license, they could protest an application.                                                                       
                                                                                                                                
Ms. Stead  advocated focusing new business  growth for "Made                                                                    
in Alaska" where locals and  tourists could purchase locally                                                                    
made products  to keep Alaska's economy  growing. Alaska had                                                                    
over  6,000  liquor  licenses.  Only  brewery,  winery,  and                                                                    
distillery license  fees were being increased.  She reported                                                                    
that  97 percent  of  the beer  manufactured  in Alaska  was                                                                    
distributed. Only  3 percent  was sold  through a  tap room,                                                                    
yet  the   related  future  growth  opportunity   was  being                                                                    
removed.  The   amazing  opportunities   SB  9   offered  to                                                                    
breweries   were  already   available.   She  indicated   20                                                                    
breweries   had  purchased   Beverage  Dispensary   Licenses                                                                    
(BDLs),  Brewpub,   or  Restaurant  Eating   Place  Licenses                                                                    
(REPLs). The  additional licenses  allowed breweries  not to                                                                    
be  restricted  by the  current  tap  room limitations.  Tap                                                                    
rooms  were  family-and-friends-gathering spots  for  locals                                                                    
year-round and  brought value  to their  communities. Senate                                                                    
Bill 9  would legislate out  new growth that  would strictly                                                                    
benefit    current   alcohol-serving    establishments   and                                                                    
distributors.   It  also   set   up   monopolies  in   small                                                                    
communities,   limited  competition,   and  stopped   future                                                                    
business growth across Alaska.                                                                                                  
                                                                                                                                
9:22:04 AM                                                                                                                    
                                                                                                                                
JED  WADE,  BEARPAW  RIVER  BREWING  COMPANY,  WASILLA  (via                                                                    
teleconference),  spoke  in  support  of SB  9.  He  thanked                                                                    
Senator Micciche for his sponsorship  of the bill and to the                                                                    
many  individuals and  entities  who had  been steadfast  in                                                                    
working to  modernize Alaska's alcohol laws.  After 11 years                                                                    
and  countless  hours of  work,  it  was  time to  pass  the                                                                    
critical  updates to  Title  4. The  bill  would create  new                                                                    
opportunities  for  his  business  to grow  in  the  Mat-Sut                                                                    
Valley. It  would allow further investment  in the community                                                                    
of  Wasilla  by  creating  more jobs.  Operating  a  brewery                                                                    
manufacturing business  in Alaska was  extremely challenging                                                                    
for  several reasons.  Alaska's restrictive  beer laws  only                                                                    
served to  exacerbate the challenges. The  bill created more                                                                    
avenues to  get products  to consumers  in the  local market                                                                    
and  would improve  his business's  ability to  compete with                                                                    
breweries out-of-state. It would  also have an immediate and                                                                    
sustaining positive  impact on  his business.  He encouraged                                                                    
the committee to move SB 9 forward.                                                                                             
                                                                                                                                
Representative Wool  asked Mr.  Wade to provide  examples of                                                                    
restrictive beer laws.                                                                                                          
                                                                                                                                
Mr. Wade  responded that opening  times were  restrictive in                                                                    
terms  of the  times  of  day he  was  allowed  to sell  his                                                                    
product  to  consumers.  Time  of   day  was  a  significant                                                                    
restriction. He noted the extended  daylight hours in Alaska                                                                    
and  how  customers  might  want   to  have  a  beer  beyond                                                                    
8:00 p.m.                                                                                                                       
                                                                                                                                
9:24:56 AM                                                                                                                    
                                                                                                                                
GEORGE TIPTON, CHARR,  KETCHIKAN (via teleconference), owned                                                                    
several  establishments  in  Ketchikan. He  fully  supported                                                                    
SB 9. He noted  watching the progress of the  bill and found                                                                    
it  to be  a  good  compromise for  all  parties within  the                                                                    
industry. The bill provided funding  and legal authority for                                                                    
online   license  applications,   thus   saving  months   or                                                                    
years-worth  of  time  in processing  delays  and  expensive                                                                    
attorney's  fees   from  both  the  state's   side  and  the                                                                    
stakeholder  side. It  also created  clear, consistent,  and                                                                    
fair  penalties  for  violations,  most of  which  would  be                                                                    
monetary   tickets  rather   than  misdemeanor   crimes.  It                                                                    
mandated pro-active  education of  laws and  expectations by                                                                    
AMCO  versus a  long-standing  system  of education  through                                                                    
enforcement.  He  encouraged  members of  the  committee  to                                                                    
forward the bill to the House Floor for passage.                                                                                
                                                                                                                                
9:26:48 AM                                                                                                                    
                                                                                                                                
PATRICK  LEVY, SELF,  FAIRBANKS (via  teleconference), owned                                                                    
the distillery in  the old city hall  in downtown Fairbanks.                                                                    
He supported SB 9 and hoped  the committee would as well. He                                                                    
thought  it seemed  like there  was  controversy around  the                                                                    
population  limits.  He implored  members  not  to let  such                                                                    
issues impede  the passage of  the many needed fixes  to the                                                                    
state's antiquated  liquor laws.  As a distillery  owner, he                                                                    
had watched events take  place year-after-year downtown such                                                                    
as the Midnight  Sun Festival where streets  were closed off                                                                    
and thousands of locals and  tourists gathered. His business                                                                    
was  required  by  law  to  be  closed  by  8:00  p.m.  and,                                                                    
therefore, not  allowed to participate  in the  festival. It                                                                    
did not  make sense.  The extended hours  in the  bill would                                                                    
allow  him  to  stay  open  and  participate  in  his  local                                                                    
festival.                                                                                                                       
                                                                                                                                
Mr. Levy  also suggested direct-to-consumer shipping  in the                                                                    
bill would allow  his business to finally  sell his products                                                                    
direct  to Alaskans.  Alaska's  current  laws prevented  him                                                                    
from shipping his products to  other Alaskans. Senate Bill 9                                                                    
would fix  the issue. In the  early days of the  pandemic he                                                                    
could ship  180 proof hand  sanitizer, a class  3 flammable,                                                                    
directly  to consumers  across the  United States  using the                                                                    
U.S.  Postal  Service (USPS).  He  indicated  that while  he                                                                    
would not be allowed to  ship his alcoholic beverage product                                                                    
through  the USPS,  being  able to  ship  his product  using                                                                    
Federal  Express  or UPS  would  be  a  new market  for  his                                                                    
business. He asked the legislature  to allow his business to                                                                    
have the new market that would  help him to recover from the                                                                    
pandemic. He asked members to vote for the passage of SB 9.                                                                     
                                                                                                                                
9:29:03 AM                                                                                                                    
                                                                                                                                
JEANNE REILLY,  SELF, ANCHORAGE (via teleconference),  was a                                                                    
business owner  of Riley's Pub  in Anchorage.  She supported                                                                    
SB  9 and  encouraged members  to pass  the bill  as it  was                                                                    
currently written. She had  worked with several stakeholders                                                                    
on the language. After many  years and many compromises SB 9                                                                    
was drafted. Title  4 was first written in  1959 and amended                                                                    
sometime  between 1980  and  1982. She  opined  the law  was                                                                    
dated. The  language in the  bill cleaned up  many confusing                                                                    
and   frustrating  questions   as   to  what   all  of   the                                                                    
participants in  the industry  could do  and how  to operate                                                                    
within clear and fair parameters.  She urged members to pass                                                                    
the bill.                                                                                                                       
                                                                                                                                
9:29:54 AM                                                                                                                    
                                                                                                                                
ANA  FISK,   VICE  PRESIDENT,  BROWN  JUG,   ANCHORAGE  (via                                                                    
teleconference),  reported  that  Brown  Jug  started  as  a                                                                    
family-owned  business  in  the  Mid-1930s.  Brown  Jug  was                                                                    
currently Alaska's  largest chain of package  stores and was                                                                    
acquired  by   Afognak  Commercial  Group  in   2020.  Since                                                                    
acquiring  Brown  Jug,  the company  had  endeavored  to  be                                                                    
responsible  community  members in  the  areas  in which  it                                                                    
operated. The company  was proud to have  donated $2 million                                                                    
to  Covenant House  in the  prior  year in  addition to  the                                                                    
$150,000 raised  by Brown Jug  for a variety  of non-profits                                                                    
including Food Bank,  ASPCA, and the Sea  Life Center. Brown                                                                    
Jug  most  recently completed  a  fundraiser  for a  $15,000                                                                    
donation to Dollars  for Dogs which would fund  a new police                                                                    
dog for the Anchorage Police Department.                                                                                        
                                                                                                                                
Ms.  Fisk continued  that the  company had  also made  major                                                                    
investments  in  renovating  and   updating  its  stores  in                                                                    
Alaska.  On  the  operational side,  the  company  had  also                                                                    
installed patron  scan systems in  four stores in  2021 with                                                                    
additional installations  in 2022. A patron  scan system was                                                                    
an  exterior-mounted  I.D.  scanner  which  kept  the  front                                                                    
entrance to a  store locked until a valid  I.D. was scanned.                                                                    
The installation of  the systems had helped  to reduce crime                                                                    
in  the  stores  by  92 percent  and  prevented  under  age,                                                                    
expired,  or fake  I.D.s from  being used  at the  company's                                                                    
locations.                                                                                                                      
                                                                                                                                
Ms. Fisk  continued that while Afognak  just became involved                                                                    
in  the industry  less  than  2 years  ago,  it  had seen  a                                                                    
growing concern with untasked  and largely unregulated state                                                                    
internet  sales coming  into Alaska.  Through an  unforeseen                                                                    
and growing  loophole, the out-of-state online  sellers were                                                                    
not  subject to  Alaska's  state alcohol  excise tax.  State                                                                    
regulators like  AMCO could not track  how much out-of-state                                                                    
alcohol was ordered through them  each year. The untaxed and                                                                    
largely  untracked  out-of-state  online  sellers  were  not                                                                    
making any  capital investments in  Alaska. Also,  they were                                                                    
not investing in state-of-the-art  systems like patron scan,                                                                    
employing  Alaskans,   or  making  donations   to  community                                                                    
organizations.  Brown  Jug   appreciated  the  legislature's                                                                    
consideration of SB 9 and  strongly supported its passage to                                                                    
address the loophole  through Section 13 of the  bill and to                                                                    
update  Alaska's alcohol  statute  more  broadly. Brown  Jug                                                                    
looked forward  to continuing to  work with  the legislature                                                                    
and  local   leaders  in   finding  policy   solutions  that                                                                    
positively impacted Alaskan communities.                                                                                        
                                                                                                                                
Representative Rasmussen  thanked the  testifier for  all of                                                                    
Brown Jug's philanthropy in Alaska.                                                                                             
                                                                                                                                
9:32:48 AM                                                                                                                    
                                                                                                                                
JASON DAVIS,  SELF, HOMER (via  teleconference), was  a city                                                                    
council member in  Homer and an owner of a  small winery. He                                                                    
suggested that  SB 9 was  a strong  bill that only  did good                                                                    
things for  existing breweries such as  himself. However, he                                                                    
was calling in  to ask that the committee to  amend the bill                                                                    
keeping the current population limits  in place. His request                                                                    
was  not  for  himself  or  other  brewers  but  for  future                                                                    
entrepreneurs who wanted to be  a part of the local industry                                                                    
that had significant growth potential.                                                                                          
                                                                                                                                
Mr.  Davis  elaborated that  Homer  was  a thriving  tourist                                                                    
town. Many people who visited  Homer came, in part, to enjoy                                                                    
the products of the five craft  brewers in the area. If SB 9                                                                    
passed in  its current  form, Homer's population  would have                                                                    
to grow  to 36,000  from the  6,000 population  presently in                                                                    
order to  have one more  brewery or one more  winery tasting                                                                    
room. The  mayor of  Homer, the  Chamber of  Commerce, other                                                                    
city council  members, and  four of  the five  craft brewers                                                                    
were also supporting  the amendment of SB 9  to maintain the                                                                    
current population limits.                                                                                                      
                                                                                                                                
Mr. Davis  commented that in  a previous  hearing, committee                                                                    
members asked  all the right  questions. The  Brewer's Guild                                                                    
had stated  their dislike  of the  population limits  in the                                                                    
the  bill. He  asked  members to  continue  asking the  hard                                                                    
questions. He  suggested asking the Brewers'  Guild why they                                                                    
disliked the limits. He thought  they would respond that the                                                                    
limits were imposed  on them by powerful  lobbyists, some of                                                                    
whom  favored  imported  factory   beer  over  locally  made                                                                    
products  in Alaska.  If bill  supporters tried  to distract                                                                    
members by talking about how  many amazing opportunities the                                                                    
bill created  for future entrepreneurs  that wanted  to open                                                                    
breweries,  he  suggested pressing  them  on  why they  also                                                                    
believed  lobbyists  would  kill   the  bill  if  the  small                                                                    
amendment  he was  suggesting maintained  the status  quo in                                                                    
place for  decades. The  answer would be  that the  bill was                                                                    
only  tolerated by  lobbyists because  it killed  the future                                                                    
expansion  of  craft  brewing  around   the  state  for  the                                                                    
foreseeable  future.  He asked  members  to  amend the  bill                                                                    
before passing it from committee.                                                                                               
                                                                                                                                
9:35:05 AM                                                                                                                    
                                                                                                                                
EVAN  WOOD,  DEVIL'S  CLUB   BREWING  COMPANY,  JUNEAU  (via                                                                    
teleconference), spoke  in support of SB  9. The legislation                                                                    
clarified how  breweries were supposed to  operate. He asked                                                                    
members to support the passage of the bill.                                                                                     
                                                                                                                                
9:36:19 AM                                                                                                                    
                                                                                                                                
ANDREW ROE, LAT 65  BREWING, FAIRBANKS (via teleconference),                                                                    
opened  a new  brewery and  made a  $2.5 million  investment                                                                    
including  a $400,000  brewhouse.  When he  and his  partner                                                                    
first opened,  they quickly became concerned  that there was                                                                    
not enough revenue  to support the business.  They had about                                                                    
$1500 per day in expenses for  things such as labor, cost of                                                                    
materials,  debt  service  to  the bank,  fuel,  taxes,  and                                                                    
electricity. They looked at things  they could do to improve                                                                    
the  number  of customers  that  walked  in the  door.  They                                                                    
continued to  make the best  product possible and  to create                                                                    
the best atmosphere for their  customers. However, they were                                                                    
limited by state  law. They were not allowed to  put up dart                                                                    
boards, have a  T.V. up to host games on  Sundays, or invite                                                                    
their favorite blue  grass bands to play. He  indicated SB 9                                                                    
would serve a  real life-breathe to his  brewery. Being able                                                                    
to stay  open later  and being  able to  have 4  live events                                                                    
each  year would  help. There  were  many people,  including                                                                    
locals and  tourists, who preferred the  brewery and tasting                                                                    
room scenes. He spoke of having  to close his doors each day                                                                    
at  8:00 pm  in  the  land of  the  midnight  sun. He  urged                                                                    
members to pass the bill.                                                                                                       
                                                                                                                                
Representative Wool  asked Mr. Roe  whether he was  aware of                                                                    
the existing law when he opened his business.                                                                                   
                                                                                                                                
Mr. Roe responded that he was  aware of the law. However, he                                                                    
did not know what kind of  revenue could be generated, as it                                                                    
could only  be estimated. He  and his partner took  a chance                                                                    
with their investment. It appeared  he would be making money                                                                    
in 2022. His  business lost a significant  amount of revenue                                                                    
in 2021.                                                                                                                        
                                                                                                                                
Representative  Wool reiterated  there was  existing statute                                                                    
when Mr. Roe made his  investment. He suggested that some of                                                                    
Mr. Roe's  revenue was  from the  wholesale beer  market. He                                                                    
thought Mr.  roe was trying  to focus on the  retail portion                                                                    
of his business. He asked  if his business model reflected a                                                                    
percentage of  revenues from retail  and wholesale.  He also                                                                    
thought Mr.  Roe might need  a BDL. He  asked him if  he had                                                                    
considered a BDL before opening.                                                                                                
                                                                                                                                
Mr.  Roe  responded  to the  first  part  of  Representative                                                                    
Wool's question. He anticipated  about 10 percent of outside                                                                    
sales.  He wanted  to focus  on the  tasting room.  When the                                                                    
numbers started  coming in after  opening, he  rapidly tried                                                                    
to expand  the tasting room.  Most of his  business' revenue                                                                    
came  from  the  tasting  room  which  was  the  reason  the                                                                    
extension  of hours  would  make  a significant  difference.                                                                    
Regarding a  BDL, he was  not interested in becoming  a bar,                                                                    
serving  hard alcohol,  or staying  open late  at night.  He                                                                    
would be  paying for  many things  he did  not need  for his                                                                    
business with a BDL.                                                                                                            
                                                                                                                                
Representative  Wool commented  that a  BDL would  allow for                                                                    
many of the  things Mr. Roe had mentioned. He  noted the Tap                                                                    
House in downtown Fairbanks which had a BDL.                                                                                    
                                                                                                                                
Mr.  Roe responded  that it  was  an added  expense that  he                                                                    
could not afford.                                                                                                               
                                                                                                                                
9:42:16 AM                                                                                                                    
                                                                                                                                
KEVIN  PRESTEGARD,  OWNER,  TWO SEASONS  MEADERY,  ANCHORAGE                                                                    
(via  teleconference), disagreed  with specific  language in                                                                    
the  bill   which  would  inhibit  future   businesses  from                                                                    
opening.  His business  would not  be  affected, rather,  it                                                                    
would  greatly benefit  from  the passage  of  the bill.  He                                                                    
urged members' support.                                                                                                         
                                                                                                                                
9:43:20 AM                                                                                                                    
                                                                                                                                
BROOKE IVY,  VICE PRESIDENT OF  POLICY AND  ADVOCACY, ALASKA                                                                    
CHILDREN'S  TRUST, ANCHORAGE  (via  teleconference), was  in                                                                    
strong support of  SB 9. All Alaska children  deserved to be                                                                    
safe and  healthy. Alcohol  played a major  role in  many of                                                                    
the social and behavioral  issues communities faced everyday                                                                    
which included child abuse and  neglect. A primary tool that                                                                    
could   be  used   to  help   address  current   trends  was                                                                    
prevention. One  form of prevention was  to minimize alcohol                                                                    
consumption  among Alaska's  youth. Youth  grew into  adults                                                                    
and  research showed  that when  consumption of  alcohol was                                                                    
reduced at a young age,  negative impacts later in life were                                                                    
also  reduced.   She  reported  that  over   80  percent  of                                                                    
substantiated  child   abuse  and  neglect   cases  involved                                                                    
substance misuse  which usually  involved alcohol.  In 2018,                                                                    
the  Alaska Office  of Children's  Services (OCS)  estimated                                                                    
that child abuse and neglect  cases where alcohol misuse was                                                                    
a factor  totaled nearly $40  million or .25 percent  of OCS                                                                    
spending.  She noted  that the  version of  SB 9  before the                                                                    
committee was  a collaborative process which  included input                                                                    
from hundreds of stakeholders from  numerous sectors and had                                                                    
taken years  to reach  an agreement.  She urged  support for                                                                    
the bill in its current form.                                                                                                   
                                                                                                                                
9:45:21 AM                                                                                                                    
                                                                                                                                
CYNTHIA DRINKWATER, OWNER,  CYNOSURE BREWING, ANCHORAGE (via                                                                    
teleconference), supported  SB 9  and its  important updates                                                                    
to Title 4.  She was hopeful that  the changes in SB  9 that                                                                    
directly  affected  her small  business  such  as the  later                                                                    
closing time,  the opportunity to have  4 live entertainment                                                                    
events  per  year,  and the  clarification  of  the  statute                                                                    
governing  the activities  of tasting  rooms would  help her                                                                    
business and  other brewery  tap rooms  to grow.  She argued                                                                    
that  the bill  was  good for  the  brewing and  hospitality                                                                    
industries  and  well  as  for  Alaskans.  The  bill  was  a                                                                    
representation  of  the hard  work  of  many people  from  a                                                                    
diverse group of participants over  several years. She urged                                                                    
members to pass the critical update to Title 4.                                                                                 
                                                                                                                                
9:46:56 AM                                                                                                                    
                                                                                                                                
SALLY  JEFFERSON, WINE  INSTITUTE, VENTURA,  CALIFORNIA (via                                                                    
teleconference),  had submitted  written testimony.  A great                                                                    
deal  of thought  and compromise  had gone  into the  winery                                                                    
direct shipping provision that had  been in the omnibus bill                                                                    
since the  beginning and were  agreed to by  the stakeholder                                                                    
group.  The provisions  were consistent  with safe  programs                                                                    
that had  been safely operating  for more than 30  years and                                                                    
that wineries  were already required  to comply  with across                                                                    
the   country.  When   SB  9   was  recently   amended,  the                                                                    
stakeholder-agreed-upon-12-case-limit  was  drastically  cut                                                                    
to 3  cases annually  with a unique  prohibition of  no more                                                                    
than 1 case per transaction.  The deep reduction in the wine                                                                    
quantity  limit appeared  to have  gotten caught  up in  the                                                                    
unrelated  issue of  spirits bootlegging.  It was  unfair to                                                                    
penalize wine consumers and products due to such concerns.                                                                      
                                                                                                                                
Ms.  Jefferson  reported  that  46  other  states  permitted                                                                    
direct  wine shipping  with  all allowing  a  minimum of  12                                                                    
cases  annually. A  number  of states  allowed  24 cases  or                                                                    
more. If a 3-case annual limit  were to be enacted, it would                                                                    
impose  the second  most restrictive  quantity limit  of the                                                                    
states allowing direct shipment.  The 1 case restriction per                                                                    
transaction would  also limit Alaska consumers  from joining                                                                    
wine   clubs  which   offered  unique   access  to   limited                                                                    
production  wines  not  available at  retail.  Also,  winery                                                                    
direct  shipments to  Alaska consumers  in  relation to  the                                                                    
state's total  wine retail  sales in 2020  were less  than 1                                                                    
percent of  sales by  volume. Even with  most of  the United                                                                    
States population  having access  to direct  wine shipments,                                                                    
97 percent of wine was  still sold through whole sellers and                                                                    
retailers  and  would not  change  with  a 12-case  quantity                                                                    
limit  on  direct  shipments. She  urged  the  committee  to                                                                    
restore  the   wine  quantity  limits   agreed  to   by  the                                                                    
stakeholder group.                                                                                                              
                                                                                                                                
9:49:14 AM                                                                                                                    
                                                                                                                                
NATASHA PINEDA, ALASKA  PUBLIC HEALTH ASSOCIATION, ANCHORAGE                                                                    
(via  teleconference),  expressed  the  board's  support  of                                                                    
SB 9. She indicated the Title  4 re-write began more than 10                                                                    
years prior.  At the time, she  worked for the state  in the                                                                    
Division  of Behavioral  Health  and was  the  chair of  the                                                                    
State  of Alaska  Committee to  Prevent Underaged  Drinking.                                                                    
The  committee  documented   its  recommendations  to  adopt                                                                    
appropriate changes  to Title 4  in their  2013 publication,                                                                    
"Alaska Strategies to Prevent  Underaged Drinking." The work                                                                    
on the  legislation had been  ongoing by  many stakeholders.                                                                    
She opined that it was time  to pass the bill in its current                                                                    
form. She expressed her support  and the board's support for                                                                    
SB   9.  Her   organization  supported   the  inclusion   of                                                                    
evidence-based  public health  practices  to reduce  alcohol                                                                    
misuse and harms included in SB 9.                                                                                              
                                                                                                                                
Representative  Wool asked  which  items in  the bill  would                                                                    
help to reduce the harm caused by alcohol.                                                                                      
                                                                                                                                
Ms. Pineda  wondered if the representative  had finished his                                                                    
question.                                                                                                                       
                                                                                                                                
Representative Wool  asked Ms.  Pineda to  point out  one or                                                                    
two items that  would most help in reducing  the harm caused                                                                    
by  alcohol.  He  had  received  calls  from  public  health                                                                    
entities who identified the alcohol problems in the state.                                                                      
                                                                                                                                
Ms.  Pineda  responded  that the  important  items  included                                                                    
internet sales and population limits.                                                                                           
                                                                                                                                
9:52:34 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:53:13 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Merrick  indicated   the  committee  would  resume                                                                    
hearing public testimony at 10:00 a.m.                                                                                          
                                                                                                                                
9:53:28 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
10:01:32 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
BEN MILLSTEIN,  KODIAK ISLAND  BREWING COMPANY,  KODIAK (via                                                                    
teleconference),  spoke in  support of  the compromise  bill                                                                    
which had been worked out  over many years and involved many                                                                    
stakeholders. He  argued that there  was not a  perfect bill                                                                    
to  satisfy all  stakeholders. The  last time  the bill  was                                                                    
before  the  legislature  it  did not  pass  because  of  an                                                                    
amendment   offered  disturbing   a  delicate   balance.  He                                                                    
addressed the BDL comment made  earlier. He indicated that a                                                                    
BDL was population  limited and was not an  option for many.                                                                    
He thanked the committee.                                                                                                       
                                                                                                                                
10:03:16 AM                                                                                                                   
                                                                                                                                
ALLISON  BIASTOCK,  ALASKA  MENTAL HEALTH  TRUST  AUTHORITY,                                                                    
ANCHORAGE  (via  teleconference),  testified in  support  of                                                                    
SB 9.  The bill  contained  provisions  that would  directly                                                                    
impact  the  health  and  wellness   of  Alaskans  and  more                                                                    
specifically beneficiaries of the  Trust. As an organization                                                                    
that had been  active in efforts to reform Title  4 for many                                                                    
years,  the  Trust  was  proud  of  the  collaborative  work                                                                    
amongst   the  diverse   stakeholders  to   arrive  at   the                                                                    
compromise  that  was SB  9.  The  bill controlled  internet                                                                    
Alcohol  sales,   limited  youth  access  to   alcohol,  and                                                                    
promoted responsible alcohol use.  At the Trust, people knew                                                                    
that alcohol misuse had a human and economic cost.                                                                              
                                                                                                                                
Ms. Biastock relayed that a  McDowell report commissioned by                                                                    
the Trust estimated the cost  of alcohol misuse in Alaska in                                                                    
2018 at $2.4 billion. It  was more difficult to estimate the                                                                    
significant  impacts  to health  and  quality  of life  that                                                                    
alcohol misuse  had on those  who experienced it as  well as                                                                    
their loved  ones. The Trust  was opposed to changes  to the                                                                    
existing rules  regulating outlet  density in the  bill. She                                                                    
suggested  that   limiting  outlet  density  was   a  proven                                                                    
strategy  in reducing  alcohol misuse.  She thanked  Senator                                                                    
Micciche  for sponsoring  the legislation.  She respectfully                                                                    
asked members to pass the bill.                                                                                                 
                                                                                                                                
Representative   Wool  noted   the   previous  speaker   had                                                                    
mentioned outlet  density. He noted  that tasing  rooms were                                                                    
allowed  in distilleries  since 2014  and in  breweries some                                                                    
years  prior.  He wondered  if  she  considered them  outlet                                                                    
density  increases.  He  asked  if  she  had  supported  the                                                                    
changes when they came forward in the past.                                                                                     
                                                                                                                                
Ms. Biastock did  not know the position of the  Trust at the                                                                    
time but could find out and respond in writing.                                                                                 
                                                                                                                                
10:05:58 AM                                                                                                                   
                                                                                                                                
MIKE  HEALY,  PRESIDENT,  SKAGWAY BREWING  COMPANY,  SKAGWAY                                                                    
(via teleconference),  had been in business  since 2007. His                                                                    
business was  a small  batch brewery and  the cost  of ounce                                                                    
per  beer  was  relatively  high compared  to  breweries  in                                                                    
Washington.  He  had  a  Brewpub license  and  in  order  to                                                                    
distribute beer anywhere  via a distributor, he  had to have                                                                    
a beverage  dispensary license to  do so. He thought  it was                                                                    
odd and argued that a business  should not be forced to have                                                                    
a license  that allowed a  business to pour liquor  in order                                                                    
to  distribute  beer  products.  He  thought  the  rule  was                                                                    
antiquated.  He  had   a  BDL  but  had  to   go  through  a                                                                    
distributor.  There was  not a  distributor in  the town  of                                                                    
Skagway.  In  order for  him  to  bring  beer into  his  own                                                                    
restaurant, he  had to  go through a  distributor and  pay a                                                                    
distribution fee  despite him  having to  do 100  percent of                                                                    
the work minus filing out a piece of paper.                                                                                     
                                                                                                                                
Mr. Healy  offered that he  had also  tried to get  his beer                                                                    
into some  of the other bars  around town and would  have to                                                                    
do  it   via  distributor.   However,  the  extra   cost  of                                                                    
distribution for  a small  batch brewery  was not  worth the                                                                    
effort. He noted having placed his  beer in one of the local                                                                    
restaurants  in the  previous summer  to  test it  out in  a                                                                    
non-profit arrangement.  He noted that the  bar carried many                                                                    
Seattle  and   Portland  tap  beers.   All  of   those  taps                                                                    
contributed   money   to  out-of-state   breweries   because                                                                    
Alaska's current  system did not  allow for the  small batch                                                                    
in-state breweries such as his  business to be profitable to                                                                    
distribute.  The  changes  in  SB   9  would  allow  him  to                                                                    
self-distribute his  beer to his  own restaurants  and other                                                                    
bars  and tap  rooms around  town and  potentially in  other                                                                    
parts  of  Southeast  Alaska.  It  would  open  up  a  great                                                                    
opportunity  for his  business  and extinguish  some of  the                                                                    
existing antiquated laws.                                                                                                       
                                                                                                                                
Representative  Wool  was  sorry  to  hear  of  Mr.  Healy's                                                                    
predicament. He  wondered about  distribution to  other bars                                                                    
and entities. Mr. Healy had indicated  he had to have a BDL.                                                                    
He wondered  if a manufacturing  license would allow  him to                                                                    
distribute. He  thought a manufacturing license  would be of                                                                    
more help.                                                                                                                      
                                                                                                                                
Mr. Healy responded that he  had looked into a manufacturing                                                                    
license  but  went  the  route  of a  brewpub.  Due  to  the                                                                    
population limits, there was  only one manufacturing license                                                                    
which was already  taken. He had spent  a significant amount                                                                    
of money  on attorney  fees trying  to navigate  through the                                                                    
state's antiquated laws for more information.                                                                                   
                                                                                                                                
Representative Wool appreciated Mr.  Healy's answer and felt                                                                    
bad for his predicament.                                                                                                        
                                                                                                                                
10:10:23 AM                                                                                                                   
                                                                                                                                
TYLER   JONES,  GENERAL   MANAGER,  BROKEN   TOOTH  BREWING,                                                                    
ANCHORAGE  (via  teleconference),  supported  SB  9  in  its                                                                    
current  form.  His  business mainly  supplied  the  Moose's                                                                    
Tooth  and Bear  Tooth  restaurants.  However, the  business                                                                    
also did some distribution. Passing  SB 9 would do away with                                                                    
the   current  wholesale   caps,  thus,   allowing  him   to                                                                    
distribute  more  beer. The  beer  was  taxed and  would  be                                                                    
revenue  positive  for  the state.  The  change  would  also                                                                    
afford him to hire additional  employees. He urged the swift                                                                    
passage of SB 9.                                                                                                                
                                                                                                                                
Representative Wool  asked what differentiated  Broken Tooth                                                                    
Brewing  from Alaska  Brewing Company.  He wondered  if each                                                                    
business had a different type of license.                                                                                       
                                                                                                                                
Mr. Jones  responded that  he had a  Brewpub license  with a                                                                    
15,000 barrel  production cap which  had not been  an issue.                                                                    
However, there was a 1,200  barrel wholesale cap on brewpubs                                                                    
instituted by the state.                                                                                                        
                                                                                                                                
10:12:55 AM                                                                                                                   
                                                                                                                                
REID  MCDONALD, OWNER  AND OPERATOR,  ODD MAN  RUSH BREWING,                                                                    
EAGLE RIVER (via teleconference),  supported SB 9 because of                                                                    
the positive  impact and opportunities it  would provide for                                                                    
current and  future breweries.  He realized  the bill  was a                                                                    
compromise and  wished it went  further in terms  of brewery                                                                    
taps rooms.  He wanted to see  the bill pass to  correct the                                                                    
antiquated  laws regarding  tap rooms  needed to  change. He                                                                    
purchased  a regular  BDL recently  to provide  him a  level                                                                    
playing  field. He  indicated that  as a  small neighborhood                                                                    
craft brewery and  an owner of a BDL, he  had the ability to                                                                    
stay open later,  have a television, and  provide live music                                                                    
which had all helped tremendously  in being able to generate                                                                    
a profit. He reiterated that  to truly compete he was forced                                                                    
to spend  big money on a  BDL which he did  not think should                                                                    
be the  case. He thought  some of  the laws in  place boiled                                                                    
down  to competition.  He thought  consumers should  be left                                                                    
with the decision of where  to frequent. The update to Title                                                                    
4 was long overdue. He supported the bill.                                                                                      
                                                                                                                                
10:15:11 AM                                                                                                                   
                                                                                                                                
JOSH HEGNA,  OWNER, GIRDWOOD BREWING COMPANY,  GIRDWOOD (via                                                                    
teleconference), urged  members to support SB  9. He thought                                                                    
the  bill  would  help  his   business  and  others  in  the                                                                    
hospitality  industry. It  would  be good  for  a myriad  of                                                                    
reasons   across   Alaskan  communities.   Businesses   were                                                                    
desperately  trying to  rebound from  the pandemic  and SB 9                                                                    
would open up some  much needed opportunities for struggling                                                                    
Alaskan  companies and  their employees.  He indicated  that                                                                    
the  extension  of hours  until  10:00  p.m. was  critically                                                                    
important  to  his  business.  He  opined  that  responsible                                                                    
adults should have the freedom to  enjoy a beer in a tasting                                                                    
room after 8:00 p.m. especially  in a healthy community like                                                                    
Girdwood. Tourists  and locals liked  to night ski  and hike                                                                    
until after  8:00 p.m. Additionally,  many people  who lived                                                                    
in Girdwood  commuted to  Anchorage for  work. After  a long                                                                    
day of work and a family  dinner, they could not make it out                                                                    
until  after 8:00  p.m.  He  thought it  was  an unfair  and                                                                    
unnecessary obstacle for a tasting  room. After a decade, it                                                                    
was time to pass the update to Title 4 contained in SB 9.                                                                       
                                                                                                                                
10:16:45 AM                                                                                                                   
                                                                                                                                
JEFF   JESSEE,   SELF,   ANCHORAGE   (via   teleconference),                                                                    
indicated that  15 years prior  when he  was the CEO  of the                                                                    
Alaska Mental Health  Trust Authority and Bob  Klein was the                                                                    
long-time chair  of the Alcohol  and Beverage  Control (ABC)                                                                    
Board,  they  had  a  number of  public  disputes  over  the                                                                    
application and enforcement of  the current alcohol beverage                                                                    
control  statutes and  the workarounds  that  the board  was                                                                    
forced to make.  Eventually he and others  realized the only                                                                    
long  term  solution  was a  comprehensive  rewrite  of  the                                                                    
state's Title  4 statutes.  The only way  to achieve  such a                                                                    
change  was for  the parties  to  sit down,  listen to  each                                                                    
other, and forge  a partnership to develop  a compromise for                                                                    
the  future. It  was  imperative to  find  common ground  to                                                                    
advance  public  policy.   He  responded  to  Representative                                                                    
Wool's earlier question. It was  always understood that once                                                                    
a  comprehensive bill  was passed,  it  would be  up to  the                                                                    
various  interests  to  pursue  any  further  amendments  or                                                                    
changes as  the industry and  public health evolved.  It was                                                                    
just part of  the process. However, the first  giant step of                                                                    
compromise needed to  occur. He urged the  committee to pass                                                                    
the  bill. He  invited  them to  bring  more targeted  bills                                                                    
forward to deal  with changes in the future.  He approved of                                                                    
the compromise reached in the bill.                                                                                             
                                                                                                                                
Representative  Wool asked  what  the  Alaska Mental  Health                                                                    
Trust  Authority's  position  was  on  previous  stand-alone                                                                    
bills  having  to do  with  brewers  and distillery  tasting                                                                    
rooms. He  had asked the  question of an  earlier testifier.                                                                    
He  also wondered  about the  Trust's  previous position  on                                                                    
increasing outlet density.                                                                                                      
                                                                                                                                
Mr. Jesse could not recall  a specific position on the bills                                                                    
the representative  mentioned. He did not  believe the Trust                                                                    
had taken a position.                                                                                                           
                                                                                                                                
10:20:17 AM                                                                                                                   
                                                                                                                                
JACK  LAU, OWNER,  DOUBLE  SHOVEL  CIDER COMPANY,  ANCHORAGE                                                                    
(via  teleconference), supported  SB  9  as written  without                                                                    
amendment. The  bill helped  the entire  industry, including                                                                    
new  and existing  businesses.  It  provided businesses  the                                                                    
opportunity  to   recover  and   grow  with   immediate  and                                                                    
sustainable impacts on  revenue. The bill was  the result of                                                                    
give and take  and the balance of the bill  was fragile. The                                                                    
changes were much better than  what was in existing statute.                                                                    
The bill  was a stakeholder  compromise. He had been  a part                                                                    
of  helping  to create  the  legislation.  The bill  removed                                                                    
overbearing  restrictions and  allowed  access  to BDLs.  He                                                                    
elaborated that  cideries, wineries, and  distilleries could                                                                    
not  currently  purchase  a  BDL. He  spoke  of  the  unfair                                                                    
advantage for breweries in the craft  area prior to SB 9. He                                                                    
noted  that the  bill removed  the restriction  of hours  of                                                                    
operation  for tasting  rooms. Most  of  his clientele  lead                                                                    
healthy lifestyles  which meant they were  hiking and biking                                                                    
later  in the  evening.  The change  in  hours of  operation                                                                    
would allow  access to his  tap room.  He also spoke  of the                                                                    
immediate benefit  of allowing  him to compete  with out-of-                                                                    
state distributors  which would  lead to more  investment in                                                                    
his company. He urged members to pass the bill as written.                                                                      
                                                                                                                                
10:22:19 AM                                                                                                                   
                                                                                                                                
SASSAN  MOSSANEN,   OWNER  AND  OPERATOR,   DENALI  BREWING,                                                                    
TALKEETNA  (via teleconference),  called in  support of  the                                                                    
current  version  of  SB  9.  He  had  served  as  the  vice                                                                    
president of  the Brewers'  Guild of Alaska  and was  on the                                                                    
CHARR    governmental   affairs    committee   during    the                                                                    
foundational period of the Title  4 rewrite. He spoke of the                                                                    
numerous hours  spent drafting the  current drafting  of the                                                                    
bill.  The  fragile  balance of  the  bill  included  public                                                                    
safety, enforcement,  and multiple other stakeholders.  SB 9                                                                    
created clarity  for license holders and  co-staff. The bill                                                                    
paid for  itself. He could  commiserate with people  who had                                                                    
amendments  they wanted  to see  in the  bill. However,  the                                                                    
bill struck a delicate balance which  he did not want to see                                                                    
disrupted. He  stressed that the manufacturer  was important                                                                    
to  him that  the bill  did not  prevent manufacturers  from                                                                    
opening. There was nowhere in  the bill prevents people from                                                                    
obtaining  a manufacturing  license.  It created  additional                                                                    
retail  opportunities that  never  existed  before and  also                                                                    
presented   opportunities   for   retailers  to   get   into                                                                    
manufacturing. He  encouraged legislators  to pass  the bill                                                                    
without amendments.                                                                                                             
                                                                                                                                
10:24:36 AM                                                                                                                   
                                                                                                                                
ZACH   ANDERSON,  CO-OWNER   AND  GENERAL   MANAGER,  HARBOR                                                                    
MOUNTAIN  BREWING,  SITKA  (via  teleconference),  spoke  in                                                                    
support  of SB  9 as  written. He  agreed with  the previous                                                                    
testifier. He wanted to continue  to open up later. He added                                                                    
that some of the changes to  his local community in terms of                                                                    
staying open  later had  not advanced.  Many of  the tasting                                                                    
rooms provided  an outlet  for local  artists and  created a                                                                    
hub  for his  small community.  Changing the  current limits                                                                    
would allow  for connection and  community needed  since the                                                                    
past  couple  of  years  of   the  pandemic.  He  hoped  the                                                                    
legislature would pass the bill.                                                                                                
                                                                                                                                
10:26:14 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:26:35 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
TOM MANNING, SELF, JUNEAU  (via teleconference),was an owner                                                                    
of  a package  store in  Juneau and  had different  types of                                                                    
licenses since 1980.  He called to support the  bill about a                                                                    
week prior. However, he was  concerned with a portion of the                                                                    
bill  which he  thought might  need  to be  amended. He  had                                                                    
participated in  the internet  sales stakeholder  group. The                                                                    
issue was  around internet sales from  out-of-state vendors.                                                                    
He did  not think the issue  was dealt with in  the bill. He                                                                    
provided some examples. He thanked the committee.                                                                               
                                                                                                                                
10:29:26 AM                                                                                                                   
                                                                                                                                
DANA WALUKIEWICZ, CHAIRMAN,  ALCOHOL BEVERAGE CONTROL BOARD,                                                                    
ANCHORAGE  (via  teleconference),  reported that  the  board                                                                    
unanimously supported SB 9. He  spoke of the benefits of the                                                                    
bill.  The  bill also  provided  funds  to the  Alcohol  and                                                                    
Marijuana Control  Office (AMCO) to modernize  its licensing                                                                    
application  process  which  was currently  time  consuming,                                                                    
paper based  and error prone.  The funding would be  used to                                                                    
create   an  online   system  that   would  increase   staff                                                                    
productivity  and  reduce  the  time to  approve  and  issue                                                                    
licenses   and  permits.   The  bill   would  also   provide                                                                    
additional options for enforcement.  The board had struggled                                                                    
with fair application  of the law. He  provided detail about                                                                    
the current  enforcement options.  The bill would  provide a                                                                    
more applicable fine schedule for violations.                                                                                   
                                                                                                                                
Representative LeBon asked why it  was critical to the board                                                                    
that the population  limit be increased from  3000 to 12,000                                                                    
for breweries and tasting rooms.                                                                                                
                                                                                                                                
Mr.  Walukiewicz  replied  that  the  board  had  previously                                                                    
stayed out of the  discussions concerning population limits.                                                                    
However,  he  noted  that  change  in  the  law  before  the                                                                    
committee   would   provide    opportunities   for   smaller                                                                    
communities that were currently  limited out. He provided an                                                                    
example  where  two  companies had  applied  for  a  brewery                                                                    
license in the  City of Cordova. The  population limit would                                                                    
only allow  for one application  to be approved.  The board,                                                                    
after deeming  both applications adequately  sufficient, had                                                                    
to pull  a name from  a hat to  make the decision  about who                                                                    
would  receive the  license. The  changes under  the current                                                                    
bill would  allow for  additional opportunities.  If another                                                                    
license  type was  available in  the community,  the brewery                                                                    
license  applicant  could  pursue a  straight  manufacturing                                                                    
license  and sell  through another  retail means  such as  a                                                                    
restaurant or  BDL. The  board had not  taken a  position on                                                                    
population caps  but believed the  bill would  be beneficial                                                                    
and would provide clarity.                                                                                                      
                                                                                                                                
Representative  LeBon asked  Mr. Walukiewicz  to comment  on                                                                    
the number of public  nuisance complaints the board received                                                                    
regarding breweries, wineries,  and distilleries versus full                                                                    
bars with BDLs.                                                                                                                 
                                                                                                                                
Mr. Walukiewics  did not have specific  statistics on public                                                                    
nuisance  complaints. In  his 18  months of  service on  the                                                                    
Alcohol and  Marijuana Control  Board, he  was not  aware of                                                                    
any public nuisance complaints related  to tap rooms. He was                                                                    
a co-owner of  the King Street Brewing  Company in Anchorage                                                                    
and held a brewery license  and a winery license holder. The                                                                    
business  had  operated a  tap  room  for 10  years  without                                                                    
having  any  public  nuisance complaints.  His  business  is                                                                    
limited  to the  36 ounces  that  they could  serve on  site                                                                    
which was not changing in  the bill. However, the bill would                                                                    
allow the  brewery to  stay open  to 10:00  p.m. He  did not                                                                    
believe  the extended  hours would  lead to  any complaints.                                                                    
Breweries  were   generally  located  in  a   commercial  or                                                                    
industrial area and tended to be away from neighborhoods.                                                                       
                                                                                                                                
Representative Wool asked if Mr.  Walukiewicz was calling on                                                                    
behalf of the ABC Board or his brewing business.                                                                                
                                                                                                                                
Mr. Walukiewicz responded that he  was speaking on behalf of                                                                    
the ABC  Board. The board  fully supported the bill.  He was                                                                    
responding to  Representative LeBon's  question. He  did not                                                                    
have  any  formal  board statistics  to  provide  on  public                                                                    
nuisance complaints.                                                                                                            
                                                                                                                                
10:37:34 AM                                                                                                                   
                                                                                                                                
IAN LAING,  SELF, ANCHORAGE  (via teleconference),  spoke in                                                                    
opposition  to portions  of the  bill and  advocated for  an                                                                    
amendment.  He  spoke  of the  values  associated  with  the                                                                    
freedom  to enter  the market  and  compete creating  better                                                                    
lives.  He  believed  the values  should  be  protected.  He                                                                    
argued that the new restrictive  rules on tasting rooms went                                                                    
directly  against such  values. He  suggested that  the only                                                                    
reason  government  should  interfere would  be  to  protect                                                                    
public safety.  He thought the  provision should  be removed                                                                    
from the bill.  He specified that, in  general, he supported                                                                    
the bill.                                                                                                                       
                                                                                                                                
Representative  Wool asked  the testifier  to specify  which                                                                    
limits he wanted to see removed from the bill.                                                                                  
                                                                                                                                
Mr. Laing responded that he  was referring to the population                                                                    
limits on tasting rooms.                                                                                                        
                                                                                                                                
Representative LeBon  asked if the testifier  was calling on                                                                    
behalf of himself or an entity.                                                                                                 
                                                                                                                                
Mr. Laing indicated he was calling on behalf of himself.                                                                        
                                                                                                                                
10:40:26 AM                                                                                                                   
                                                                                                                                
JEROME  HERTEL,   CEO,  ALASKA   STATE  FAIR,   PALMER  (via                                                                    
teleconference),  spoke in  support  of SB  9.  A few  years                                                                    
prior  the  Alaska  State  Fair's  alcohol  license  was  in                                                                    
jeopardy of  not being renewed.  It was determined  that the                                                                    
fair  did not  meet the  definition of  a recreational  site                                                                    
license  category -  a license  category the  fair had  been                                                                    
operating  under  for the  past  39  years. The  matter  was                                                                    
temporarily  resolved with  the passage  of SB  16 in  2019.                                                                    
That  bill grandfathered  the Alaska  State  Fair under  the                                                                    
recreational site license until  a new fair license category                                                                    
could be adopted in the Title 4 rewrite.                                                                                        
                                                                                                                                
Mr. Hertel continued that the current  version of SB 9 was a                                                                    
result  of many  hours  of hard  work  and compromise  among                                                                    
stakeholders  and a  solution to  the state's  problems. The                                                                    
bill cleaned  up language and provided  clarity. Senate Bill                                                                    
9 allowed  the fair to continue  operating as it had  in the                                                                    
past. It allowed  the fair to host over  300,000 people each                                                                    
year and  70 events each  year. I  also allowed the  fair to                                                                    
continue being  an economic engine  for the state  with over                                                                    
$26  million in  economic  impact. Without  SB  9, the  fair                                                                    
would be  faced with  the same  things it  had faced  in the                                                                    
past.  He requested  that members  of the  committee support                                                                    
the current version of SB 9.                                                                                                    
                                                                                                                                
10:42:41 AM                                                                                                                   
                                                                                                                                
GRAHAM  DOWNEY,  ALASKA   PUBLIC  INTEREST  RESEARCH  GROUP,                                                                    
ANCHORAGE   (via    teleconference),   provide   information                                                                    
regarding   his  research   group   which  represented   the                                                                    
consumer's  interest.  He  recognized  the  hard  work  over                                                                    
several years  in crafting  SB 9  and broadly  supported the                                                                    
bill.  He   opined  that  the  bill   provided  clarity  and                                                                    
simplification  of the  rules. He  had heard  from bars  and                                                                    
breweries  about the  positive changes  the bill  would make                                                                    
for  the regulatory  environment.  He  also appreciated  the                                                                    
advocacy of  entities to make sure  that vulnerable Alaskans                                                                    
were protected by the bill.                                                                                                     
                                                                                                                                
Mr. Downey continued  that the group was  concerned with the                                                                    
population limits. He  was worried that the high  limit of 1                                                                    
per  12,000  citizens  would have  anti-competitive  effects                                                                    
that   would  harm   consumers  by   reducing  choices   and                                                                    
increasing prices. He argued that  a less competitive market                                                                    
was not  good for  anyone. He  encourage members  to address                                                                    
the concerns he spoke of but would support the bill.                                                                            
                                                                                                                                
10:45:06 AM                                                                                                                   
                                                                                                                                
MICHAEL  JEFFERY,  SELF,   UTQIAGVIK  (via  teleconference),                                                                    
joined the many  others who had honored  the compromise that                                                                    
resulted  in  the   current  form  of  Ms.   Brawley  9.  He                                                                    
particularly  approved  of  the provisions  around  ordering                                                                    
liquor online.  He appreciated all  the hard work  that went                                                                    
into crafting the legislation.                                                                                                  
                                                                                                                                
10:46:50 AM                                                                                                                   
                                                                                                                                
TOM  CHARD,  CEO,   ALASKA  BEHAVIORAL  HEALTH  ASSOCIATION,                                                                    
FAIRBANKS (via teleconference),  submitted written testimony                                                                    
and  would   keep  his  testimony  short.   The  association                                                                    
supported  SB 9  in  its current  form  and appreciated  the                                                                    
collaboration between parties to craft the bill.                                                                                
                                                                                                                                
10:48:00 AM                                                                                                                   
                                                                                                                                
ERICK HEIMBIGNER, SELF,  JUNEAU (via teleconference), called                                                                    
in  opposition of  the  population limits  on  the tap  room                                                                    
licenses. He  thought it would prohibit  the opportunity for                                                                    
competition.  However, he  did appreciate  the revamping  of                                                                    
Title 4.  He reiterated that  the tap room  limit restricted                                                                    
opportunities  to other  businesses  and advocated  amending                                                                    
the  bill.   He  thanked  the  committee   for  hearing  his                                                                    
testimony.                                                                                                                      
                                                                                                                                
10:49:38 AM                                                                                                                   
                                                                                                                                
JOHN   BLASCO,   ALASKA   BREWING   COMPANY,   JUNEAU   (via                                                                    
teleconference),  supported SB 9.  He had  been part  of the                                                                    
stake holder group that helped  to craft the legislation. He                                                                    
urged support for the bill.                                                                                                     
                                                                                                                                
10:50:43 AM                                                                                                                   
                                                                                                                                
DAVID  CALDWELL,   BROKEN  TOOTH  BREWING,   ANCHORAGE  (via                                                                    
teleconference), spoke in  support of the bill  and hoped it                                                                    
could  be passed  as soon  as possible.  He thanked  Senator                                                                    
Micciche for all of his hard work on crafting SB 9.                                                                             
                                                                                                                                
10:51:29 AM                                                                                                                   
                                                                                                                                
Co-Chair Merrick CLOSED public testimony.                                                                                       
                                                                                                                                
SENATOR PETER MICCICHE, SPONSOR,  commented on a remark made                                                                    
by  a wine  maker. It  was  exemplary of  changing one  item                                                                    
without  considering  the  whole picture  and  the  delicate                                                                    
balance  struck by  the legislation.  He further  elaborated                                                                    
that  he  had  worked  for   many  years  with  all  of  the                                                                    
stakeholders.  Some of  the  items in  the  bill offset  the                                                                    
balance  because  there  had not  been  the  opportunity  to                                                                    
balance the cause  and effect of the changes.  He thought it                                                                    
was important  to consider all  of the benefits of  the bill                                                                    
before  condemning  certain portions  of  it.  He noted  the                                                                    
number of new  customers going to tasting  rooms. There were                                                                    
things  that  were  extremely  valuable  to  tasting  rooms,                                                                    
breweries,   wineries,   and    distilleries   while   still                                                                    
recognizing  the value  of the  traditional  licensee. If  a                                                                    
business  wanted to  be  similar  to a  bar,  they would  be                                                                    
subject  to  population  limits.  Many of  the  folks  being                                                                    
called to  testify were not  aware of the entire  picture of                                                                    
how the bill worked.                                                                                                            
                                                                                                                                
Senator Micciche also  wanted to discuss a  couple of things                                                                    
including legislative  intent language.  He had  spoken with                                                                    
Director  Klinkhart  about  items   of  concern.  The  first                                                                    
concern had  to do with  the recreational site  license that                                                                    
would  be converted  to  a new  sporting  activity or  event                                                                    
license.  A previous  bill  was passed  to  save the  Alaska                                                                    
State  Fair and  several  other business  types. There  were                                                                    
about 4 remaining.  The language in Section 168  on page 122                                                                    
of   the  bill   intended  to   grandfather  the   remaining                                                                    
recreation site  licenses into a sporting  activity or event                                                                    
activity  license.  He  explained  that  he  was  protecting                                                                    
previous license  holders. There  were only  a few  left. He                                                                    
believed those existing businesses  should be protected with                                                                    
another  license type.  Director  Klinkhart  thought it  was                                                                    
important  for  the senator  to  clarify  the issue  on  the                                                                    
record.   He  wanted   the   remaining   4  entities   would                                                                    
grandfathered into another license type.                                                                                        
                                                                                                                                
Senator  Micciche   also  wanted  to  address   direct  wine                                                                    
shipments. There  was a small  group of  Alaskans purchasing                                                                    
wines from wine collections outside  of Alaska. It had never                                                                    
been regulated  before and would  not be regulated in  SB 9.                                                                    
He  clarified  that  private collections  came  from  estate                                                                    
sales and  would continue to  be unregulated. If  an Alaskan                                                                    
legally  purchased   from  an  auction  house,   they  could                                                                    
continue to  purchase and ship  legally as long as  the sale                                                                    
was licensed in Alaska or another  state. It was not a large                                                                    
market  and  was  an  unregulated   transfer  of  a  private                                                                    
collection to  an individual in  Alaska. He  thanked members                                                                    
for their time and was available for questions.                                                                                 
                                                                                                                                
10:57:53 AM                                                                                                                   
                                                                                                                                
Representative  LeBon asked  if  the  senator thought  there                                                                    
should be an  element of local control over  the issuance of                                                                    
a brewery and tasting room  license if a community wanted to                                                                    
exceed the population limit proposed in the bill.                                                                               
                                                                                                                                
Senator  Micciche responded  that  there was  an element  of                                                                    
control in the  bill. If a brewery tasting room  chose to go                                                                    
into  the REPL  business  and the  municipality was  already                                                                    
capped, the bill would allow  a municipality to petition the                                                                    
ABC Board for additional REPLs.                                                                                                 
                                                                                                                                
Representative  LeBon asked  what  avenue  a business  would                                                                    
have if  it did not want  to upgrade its license  to include                                                                    
food  service, wanted  to remain  a brewery  with a  tasting                                                                    
room,  and   the  population  restriction  was   capped.  He                                                                    
wondered if  there would be  an appeal process  within their                                                                    
community or the ABC Board.                                                                                                     
                                                                                                                                
Senator Micciche  indicated there was not  an appeal process                                                                    
but there were  many other options. They would  have 2 years                                                                    
to  consider the  option. If  the  bill were  to pass,  some                                                                    
current   tasting  rooms   would   go   into  the   brewery,                                                                    
distillery,  and winery  business because  population limits                                                                    
would no  longer apply. As  a result, tasting  room licenses                                                                    
would be  freed up.  Some would  move into  the REPL  or BDL                                                                    
models which would  also free up tasting  room licenses. For                                                                    
the  communities  that  were   currently  limited,  such  as                                                                    
Cordova,  they would  have other  options that  would become                                                                    
available with the passage of SB 9.                                                                                             
                                                                                                                                
11:01:16 AM                                                                                                                   
                                                                                                                                
Representative LeBon provided  a hypothetic scenario because                                                                    
of the  Fairbanks area having both  a borough and a  city. A                                                                    
business would  likely want to  establish a  business within                                                                    
the  city  rather  than  the  borough due  to  the  flow  of                                                                    
traffic,  but the  city was  limited out  by population.  He                                                                    
wondered  if there  should be  an  avenue to  appeal to  the                                                                    
local government for a waiver.                                                                                                  
                                                                                                                                
Senator  Micciche  appreciated  the  question.  There  could                                                                    
always be  an appeal to  the legislature. He  would continue                                                                    
to  speak to  the compromise  and the  tens of  thousands of                                                                    
hours it  took to reach  a compromise.  It did not  mean the                                                                    
number  was the  perfect number.  It might  happen that  the                                                                    
legislature  would  make specific  changes,  but  not in  an                                                                    
omnibus bill.  He asked for  the legislature to see  how the                                                                    
bill   played  out.   There  were   very  few   issues  with                                                                    
stakeholders that could not be addressed with the bill.                                                                         
                                                                                                                                
11:05:25 AM                                                                                                                   
                                                                                                                                
Vice-Chair  Ortiz  noted  that   through  the  public  input                                                                    
process  the  one  item of  contention  was  the  population                                                                    
limit. He wondered about how it was balanced.                                                                                   
                                                                                                                                
Senator  Micciche  explained  that without  the  limit,  the                                                                    
tasting  rooms  would not  be  contributing  to the  overall                                                                    
benefits of  the bill. He  thought it was a  fairness issue.                                                                    
Human beings  were admittedly self-serving. He  had tried to                                                                    
have  give-and-take in  the bill.  All  of the  contributors                                                                    
were  Alaskans  and were  all  intimately  involved. He  saw                                                                    
Alaskans at the  table who cared about a  better outcome. He                                                                    
reiterated the balance reflected in the bill.                                                                                   
                                                                                                                                
11:09:54 AM                                                                                                                   
                                                                                                                                
Vice-Chair  Ortiz thanked  the  senator for  his answer.  He                                                                    
suggested    that   the    other   opportunities    included                                                                    
significantly  higher  levels  of  investment.  He  did  not                                                                    
believe   the   other   opportunities  would   actually   be                                                                    
opportunities for  new entrepreneurs. He thought  staring up                                                                    
a  new business  was already  a large  lift. He  appreciated                                                                    
that  there  would be  other  opportunities  but they  would                                                                    
require significantly  more investment of  entrepreneurs. He                                                                    
asked if he was correct.                                                                                                        
                                                                                                                                
Senator   Micciche   responded   that  he   disagreed   with                                                                    
Vice-Chair Ortiz.  He provided  a hypothetical  scenario. He                                                                    
mentioned  the  progression  of   a  business  growing  into                                                                    
another form  of business. Some  businesses would  choose to                                                                    
stay little while others would choose to expand.                                                                                
                                                                                                                                
11:13:09 AM                                                                                                                   
                                                                                                                                
Representative Wool suggested that  a population cap was the                                                                    
topic of the day. He spoke of  a previous cap of 1 per 9000.                                                                    
He asked if  the change was to 1 per  12,000 in exchange for                                                                    
the  expanded  hours and  live  music.  He wondered  if  the                                                                    
change was an exchange in order  for the BDL owners to agree                                                                    
to  the other  two  changes.  In other  words,  if the  BDLs                                                                    
agreed  to  the expanded  hours  and  additional live  music                                                                    
events for breweries,  the cap would be  raised resulting in                                                                    
fewer new breweries with tasting rooms in communities.                                                                          
                                                                                                                                
Senator  Micciche responded  that under  no condition  would                                                                    
there  be fewer  breweries  because the  existing ones  were                                                                    
grandfathered.  There  was still  room  for  growth in  most                                                                    
communities. There  were other business models  that brewers                                                                    
would be  able to move into.  He replied that the  cap was 1                                                                    
in 9,000  before all of  the opportunities were  agreed upon                                                                    
in the  balance of  SB 9 along  with things  breweries could                                                                    
not do  before. He  did not  want to see  a clamp  placed on                                                                    
expansion  of  breweries  and  a  more  successful  business                                                                    
model.  Amendments  would  play  into  squashing  additional                                                                    
opportunities  in   the  brewery,  distillery,   and  winery                                                                    
businesses. He had posed the  question as to what would make                                                                    
a business want to expand.                                                                                                      
                                                                                                                                
11:16:40 AM                                                                                                                   
                                                                                                                                
Representative Wool  noted a caller  who mentioned he  had a                                                                    
brew pub license but could  not distribute. There was a brew                                                                    
pub distribution cap of 1200  barrels. The caller wanted the                                                                    
cap  expanded. The  caller  state he  had to  get  a BDL  to                                                                    
distribute.  He did  not know  BDLs  could distribute  under                                                                    
current law. He asked for clarification.                                                                                        
                                                                                                                                
Senator  Micciche thought  the caller  might have  cited the                                                                    
wrong license type.  The bill allowed a business  to have an                                                                    
offsite  brewery  so  that  it could  sell  without  a  cap.                                                                    
Currently   breweries,  distilleries,   and  wineries   were                                                                    
capped.  Some  people  were in  the  tasting  room  business                                                                    
because  they could  not distribute  enough  to make  money.                                                                    
They  offset the  cost with  some  additional revenues  from                                                                    
their  tasting  room. Some  of  the  existing tasting  rooms                                                                    
would  move  into  being a  brewery  that  just  distributed                                                                    
without having a tasting room.                                                                                                  
                                                                                                                                
Co-Chair  Merrick  informed  the committee  she  planned  to                                                                    
adjourn at 11:30 p.m.                                                                                                           
                                                                                                                                
Representative Wool  wanted to comment that  the caller from                                                                    
Fairbanks  who  just  opened  a brewery  knew  what  he  was                                                                    
getting into regarding restrictions  under existing law. The                                                                    
caller also reported that his  business model was to have 90                                                                    
percent  of revenues  from  on premise  sales  (beer by  the                                                                    
glass)  and 10  percent  from wholesale.  He understood  the                                                                    
caller  wanting   to  expand  his  hours   helping  out  his                                                                    
business. However, he did not  see the caller getting rid of                                                                    
his  tasting room.  He thought  it  was a  tough market  and                                                                    
could  see  where  a  tasting  room  would  be  solvent.  He                                                                    
applauded the changes that would  allow them to convert to a                                                                    
REPL.  He  suggested breweries  could  easily  expand to  an                                                                    
REPL.   He  applauded   the  REPL   and  BDL   additions  to                                                                    
manufacturing  licenses. He  understood  the  deal that  was                                                                    
struck. He argued that once  something was expanded it would                                                                    
be difficult to change. He was  afraid to expand too much at                                                                    
once. He  was cautious of the  bill. He pointed out  that in                                                                    
the last 3 legislatures in the  previous 6 years the Title 4                                                                    
rewrite bill had adopted 36 amendments.                                                                                         
                                                                                                                                
11:21:57 AM                                                                                                                   
                                                                                                                                
Representative  Josephson referred  to Section  167, Section                                                                    
168,  and Section  169 regarding  the transition.  He talked                                                                    
about a 2-year  window of being grandfathered.  He asked for                                                                    
further explanation.                                                                                                            
                                                                                                                                
Senator  Micciche  appreciated  the question.  He  indicated                                                                    
there  were  31  tasting  rooms in  the  state  since  2007.                                                                    
However,  people  in Cordova  would  have  to wait,  as  the                                                                    
community  was capped  out. Homer  was also  capped out.  He                                                                    
thought there  would be  the normal  flow of  new breweries,                                                                    
distilleries, and wineries. He  noted there had been several                                                                    
changes  to the  legislation. He  believed the  industry and                                                                    
public safety  had suffered immensely because  of the delays                                                                    
with passing the  bill. He commented that  through the years                                                                    
of the  bill not passing  he had moved the  industry, public                                                                    
safety, and public health backwards.                                                                                            
                                                                                                                                
Co-Chair Merrick  thanked Senator Micciche for  being in the                                                                    
meeting.  She   announced  that   amendments  were   due  by                                                                    
6:00 p.m.  on  Saturday, April  2,  2022.  She reviewed  the                                                                    
agenda for the following meeting.                                                                                               
                                                                                                                                

Document Name Date/Time Subjects
SB 9 Public Testimony Rec'd by 032922.pdf HFIN 3/30/2022 9:00:00 AM
SB 9
SB 9 Support AMHTA 033122.pdf HFIN 3/30/2022 9:00:00 AM
SB 9
HB 60 Amendments 1-7 032922.pdf HFIN 3/30/2022 9:00:00 AM
HB 60