03/11/1998 03:20 PM House L&C

HB 411 - LOCAL OPTION FOR WINERY LICENSE                                       
                                                                               
Number 2142                                                                    
                                                                               
CHAIRMAN ROKEBERG announced the committee's next order of business             
was HB 411, "An Act relating to issuance of a winery license in a              
local option area."  He noted the presence on teleconference of Mr.            
Roche, Alcoholic Beverage Control (ABC) Board, to answer questions.            
                                                                               
Number 2160                                                                    
                                                                               
REPRESENTATIVE ALAN AUSTERMAN, the bill sponsor, came forward to               
present HB 411, noting it came from a request by one of his                    
constituents in the village of Port Lions on Kodiak Island.  He                
said this person would like establish a winery on Kodiak Island,               
making wine from the natural salmonberries and then selling it                 
wholesale.  Representative Austerman indicated that, in order to do            
this, apparently this person would end up having a liquor license              
and the potential to sell alcohol across the counter.  This was                
something neither the person nor the village wanted to do.                     
Representative Austerman indicated he and his staff had come up                
with a very small change to the laws, adding a winery license                  
exemption to AS 04.11.491.  He referred to the sponsor statement,              
noting that once this language was added, a local-option election              
could be sought in the City of Port Lions, or any other city or                
village in Alaska.  He indicated that after the local-option                   
election was held, the individual would apply for a winery license             
and agree to have the ABC Board ban retail sales, noting the board             
has the authority to impose such limitations.                                  
The sponsor statement read:                                                    
                                                                               
     This legislation adds a winery licensee under AS                          
     04.11.491(a)(2) and (b)(2).                                               
                                                                               
     By adding this language, an individual could seek a                       
     local-option election in any city to ban liquor licenses                  
     except a winery, as would be allowed under this amended                   
     statute.                                                                  
                                                                               
     When the statute is amended and a local-option election                   
     held, the individual would then apply for their winery                    
     license and agree to have the Alaska Alcoholic Beverage                   
     Control Board (ABC Board) ban retail sales under the                      
     license in that particular city.  The ABC Board has the                   
     authority to impose limitations on licenses as per AS                     
     04.11.395.                                                                
                                                                               
     The individual would then have the privilege of selling                   
     to persons/entities holding a valid Alaska liquor                         
     license.  This small change will created many business                    
     opportunities, while preserving the integrity of alcohol                  
     control.                                                                  
                                                                               
     Continued economic development is essential in our                        
     village communities if they are to further their goals of                 
     self-sufficiency.  The State of Alaska needs to persist                   
     in expanding opportunities for the establishment of                       
     production and marketing cooperatives.                                    
                                                                               
Number 2230                                                                    
                                                                               
CHAIRMAN ROKEBERG asked Representative Austerman if he had tasted              
this person's salmonberry wine.                                                
                                                                               
REPRESENTATIVE AUSTERMAN responded he had not.                                 
                                                                               
CHAIRMAN ROKEBERG asked if he had tried someone else's.                        
                                                                               
REPRESENTATIVE AUSTERMAN answered in the affirmative, noting it was            
excellent.                                                                     
                                                                               
Number 2243                                                                    
                                                                               
CHAIRMAN ROKEBERG said, then, that there was the potential for a               
small, successful cottage industry in the village.  Chairman                   
Rokeberg asked Mr. Roche if the ABC Board and the Administration               
had any objections to HB 411.                                                  
                                                                               
Number 2250                                                                    
                                                                               
WILLIAM ROCHE, Enforcement Supervisor, Alcoholic Beverage Control              
Board, testified via teleconference from Anchorage.  He stated the             
board took a neutral position on HB 411, seeing it as a local-                 
option issue.  Mr. Roche indicated the reason for the omission of              
this option was not known, whether it had been intentional or                  
simply an oversight, but he stated that basically adding it would              
not have any adverse effect.                                                   
                                                                               
Number 2289                                                                    
                                                                               
CHAIRMAN ROKEBERG asked if there were further questions or further             
witnesses.  There being none, he stated the public hearing on HB
 was closed.                                                                
                                                                               
Number 2297                                                                    
                                                                               
REPRESENTATIVE HUDSON made a motion to move HB 411 out of the House            
Labor and Commerce Standing Committee with individual                          
recommendations and the attached zero fiscal note, asking unanimous            
consent.  There being no objections, HB 411 was moved out of the               
House Labor and Standing Committee.