05/08/2002 03:25 PM House L&C

SB 215-COMMON CARRIER LIQUOR LICENSE                                                                                          
                                                                                                                                
CHAIR MURKOWSKI announced that the  first 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."                                                                                               
                                                                                                                                
CHAIR MURKOWSKI reminded the committee  that this legislation was                                                               
set  aside  at  a  past hearing  because  committee  members  had                                                               
questions for which there were no answers at the time.                                                                          
                                                                                                                                
Number 0107                                                                                                                     
                                                                                                                                
DON SMITH,  Staff to Senator John  Cowdery, Senate Transportation                                                               
Standing  Committee,  Alaska  State Legislature,  announced  that                                                               
Representative  Rokeberg was  correct  in  his interpretation  of                                                               
Title IV  in that this legislation  would raise the fees  for the                                                               
seasonal licenses from $700 to  $1,000.  However, the fiscal note                                                               
would  be  less  because  the [seasonal]  carriers  would  pay  a                                                               
slightly higher  rate.   He noted  that seasonal  license holders                                                               
pay 50 percent  of the fee.  In response  to Chair Murkowski, Mr.                                                               
Smith related  that a lobbyist  for Alaska Airlines  informed him                                                               
that there are no additional fees [imposed] in other states.                                                                    
                                                                                                                                
CHAIR MURKOWSKI  noted that the  committee packet  should include                                                               
an  e-mail from  Doug Griffin  dated  with today's  date.   Chair                                                               
Murkowski  asked if  Mr. McKay  could shed  any light  as to  why                                                               
Alaska  is unique  with  regard  to the  amount  assessed on  the                                                               
common carrier licenses for Alaska Airlines.                                                                                    
                                                                                                                                
Number 0318                                                                                                                     
                                                                                                                                
BILL  MACKAY,  Vice  President, Public  and  Government  Affairs,                                                               
Alaska  Airlines -  Seattle, testified  via teleconference.   Mr.                                                               
MacKay  related that  he had  confirmed  with [Alaska  Airlines']                                                               
finance group  that the charges on  the systemwide state-to-state                                                               
license  fee  page  are  only   charges  associated  with  liquor                                                               
licenses.  Illinois did want to  amend [its fees], he noted, to a                                                               
flat $60 charge  rather than the previous $1,260.   Illinois only                                                               
requires Alaska Airlines to license  one aircraft.  He also noted                                                               
that Colorado and  Maine are missing from the  list because those                                                               
contracts were recently  initiated.  Mr. MacKay said  that he had                                                               
no  idea how  Alaska's  formula  has gotten  so  out  of line  in                                                               
comparison to the other states.                                                                                                 
                                                                                                                                
REPRESENTATIVE  ROKEBERG  asked if  Mr.  MacKay  has seen  a  fee                                                               
schedule of all the 50 states  and other jurisdictions.  He asked                                                               
if there are any fees in Mexico.                                                                                                
                                                                                                                                
MR. MACKAY  answered that he  hasn't seen such a  spreadsheet and                                                               
didn't know the answer regarding  fees for Mexico, but offered to                                                               
provide  that information  as well  as the  information regarding                                                               
Colorado and Maine.                                                                                                             
                                                                                                                                
Number 0462                                                                                                                     
                                                                                                                                
DOUGLAS  GRIFFIN,  Director,  Alcoholic Beverage  Control  Board,                                                               
Department  of  Revenue,  testified   via  teleconference.    Mr.                                                               
Griffin pointed  out that  Alaska Airlines is  unique due  to the                                                               
number  of licenses  it holds.    Beside the  104 common  carrier                                                               
licenses  held by  Alaska  Airlines, only  111  others are  held.                                                               
Alaska  Airlines pays  full price  for those  104 common  carrier                                                               
licenses.  Of the other 111  licenses, 89 are seasonal and 22 are                                                               
year  round  license, which  is  why  this fee  increase  doesn't                                                               
generate much additional  revenue.  Mr. Griffin  pointed out that                                                               
AS 04.11.680 is  the provision that provides  the seasonal common                                                               
carriers a break.                                                                                                               
                                                                                                                                
MR.  GRIFFIN said  that with  this legislation,  the offset  does                                                               
cost the  state a little  less, although  it doesn't make  up all                                                               
the breaks  Alaska Airlines  receives.   Mr. Griffin  related his                                                               
belief that  this is  an area  in which  the board  realizes that                                                               
Alaska's  statutes   are  probably   in  need   of  comprehensive                                                               
revision.   Mr. Griffin, in response  to Representative Rokeberg,                                                               
confirmed that the board will submit a revised fiscal note.                                                                     
                                                                                                                                
CHAIR MURKOWSKI, upon determining no  one else wished to testify,                                                               
closed public testimony.                                                                                                        
                                                                                                                                
Number 0727                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MEYER  moved  to  report  CSSB  215(FIN)  out  of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.   There  being  no  objection, CSSB  215(FIN)  was                                                               
reported from the House Labor and Commerce Standing Committee.