Legislature(2001 - 2002)
05/06/2002 03:25 PM House L&C
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 215-COMMON CARRIER LIQUOR LICENSE CHAIR MURKOWSKI announced that the next order of business would be CS FOR SENATE BILL NO. 215(FIN), "An Act relating to licensing common carriers to dispense alcoholic beverages; and providing for an effective date." REPRESENTATIVE HALCRO recalled that the public testimony was closed on CSSB 215(FIN). CHAIR MURKOWSKI informed the committee that she had concern that there might have been some small [carriers] who, upon this legislation coming into effect, would face higher [fees]. In looking through the list of licensees in Alaska, almost all the smaller entities with a common carrier license has a common carrier seasonal license. This common carrier seasonal license can be obtained for about half the price and thus they're not in the same situation as Alaska Airlines and its multiple carrier licenses. Number 0708 REPRESENTATIVE ROKEBERG turned to the reference labeled "SB 215 - License Renewal Breakdown". He remarked that the "Others" category seems significant in regard to the gains and losses. CHAIR MURKOWSKI informed the committee that those entities impacted by this [legislation are] ERA Aviation, Marriott, Phillips Alaska, Inc., Revolution Airways, the State of Alaska, United Airlines, and the White Pass and Yukon Route Railroad. The others have seasonal common carrier licenses. She related her feeling that the [smaller] seasonal operators are addressed. In further response to Representative Rokeberg, Chair Murkowski confirmed that the cruise ships have to sign up as well and pointed out that they are seasonal as well. She noted that these fees haven't increased since 1980. [This legislation] would raise the fees for everyone and pass the discount to Alaska Airlines. CHAIR MURKOWSKI commented that she didn't how other states deal with their licensure fees. The sponsor statement specifies that what Alaska Airlines pays in Alaska is an inordinate amount compared to what it pays in other states. Therefore, she questioned whether there are other taxes that the other states might impose in addition to the licensure fee, which would make Alaska's licensure fee look incongruent with the licensure fees of other states. REPRESENTATIVE HALCRO related his belief that the difference may have to do with landing fees. Number 1050 CHAIR MURKOWSKI informed the committee that Texas charges a per drink tax on alcohol consumed over the air in Texas. Chair Murkowski announced that the bill could be held until answers to the committee's questions are received. REPRESENTATIVE ROKEBERG noted his preference to move the bill. CHAIR MURKOWSKI restated her question regarding whether other states charge other fees related to alcohol provided by an airline that the state would recoup. Number 1140 DON SMITH, Staff to Senator John Cowdery, Alaska State Legislature, said that he didn't know. In further response to Chair Murkowski, Mr. Smith answered that he didn't know how Alaska has gotten so "out of whack" with the other states because he wasn't familiar with how other states charge for liquor licenses. Mr. Smith mentioned [Alaska Airlines'] growth and [the fact] that in the aggregate about 40 percent of Alaska Airlines' air time is spent in Alaska. Mr. Smith recalled that there were problems each time an airplane was licensed when it received a new start-up date. CHAIR MURKOWSKI remarked that Section 1 seems important due to making it easier to obtain the licensing. MR. SMITH pointed out that eventually everything will be on a two-year cycle. CHAIR MURKOWSKI characterized this matter as a policy call and noted that this would be a direct benefit to Alaska Airlines. Number 1274 REPRESENTATIVE ROKEBERG expressed concern with regard to the symmetry between the $1,000 fee for the first ten licenses and the $100 fee for each thereafter, as it relates to the seasonal fees. MR. SMITH indicated that the [licenses] fall under the applicable fee. He noted that some of the trains and cruise ships purchase a half-year license, which is cheaper. He related that someone had told him that West Tours would have to have three more train cars before this legislation would make economic sense for them. Although this legislation is written as if it will impact everyone, it only impacts one carrier at the moment. REPRESENTATIVE ROKEBERG related his belief that this legislation will increase the fees on everyone else until the entity reaches the number of ten aircraft or train cars. MR. SMITH said that his understanding is that those with less than ten would stay under the current [license fees]. CHAIR MURKOWSKI interjected her belief that the reason the smaller entities would be Okay under this is because most of the smaller entities operate under a seasonal license. MR. SMITH indicated agreement that such is the case and would be the case unless the entity grew. CHAIR MURKOWSKI directed attention to Section 3, which relates that this legislation applies to a new common carrier dispensary license or renewal occurring on or after the effective date. Therefore, if the licenses are up for renewal every other year, these entities will fall under these renewal fees [at that time]. REPRESENTATIVE ROKEBERG noted that this has to do with Title 4. Number 1407 CHAIR MURKOWSKI commented that it seems a bit ironic to provide a break in the amount collected from a carrier on the carrier's license to dispense alcoholic beverages when the legislature just voted to increase the alcohol tax. REPRESENTATIVE MEYER, after discussion, surmised that Alaska Airlines would probably buy alcohol in Alaska because its cheaper in Alaska when one considers the taxes in Seattle. The committee took an at-ease from 3:50 p.m. to 3:52 p.m. CHAIR MURKOWSKI recalled that one of the questions hasn't been answered and thus this legislation would be held to Wednesday. REPRESENTATIVE ROKEBERG remarked that it would be impossible to sort out the landing fees that may be incorporated in the [license fees] of other states. CHAIR MURKOWSKI disagreed and remarked that someone in the administration of Alaska Airlines should be able to specify what, beyond the license fee, is paid in various states. REPRESENTATIVE ROKEBERG suggested that a list of the common carrier license fees in each state would probably be adequate. CHAIR MURKOWSKI agreed that might be helpful. She reiterated that the legislation would be held until Wednesday.
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