04/27/2004 03:50 PM House L&C

SB 194-LIQUOR DELIVERED TO HOTELS/CRUISE SHIPS                                                                                
                                                                                                                                
CHAIR ANDERSON  announced that the  next order of  business would                                                               
be CS FOR SENATE BILL  NO. 194(FIN), "An Act authorizing delivery                                                               
of up to  two bottles of distilled spirits and  40 ounces of beer                                                               
to a cruise ship passenger or hotel guest."                                                                                     
                                                                                                                                
Number 0574                                                                                                                     
                                                                                                                                
DOUG  LETCH,   Staff  to  Senator  Gary   Stevens,  Alaska  State                                                               
Legislature,  explained  that  SB  194  adds  statutory  language                                                               
allowing the delivery  to hotel guests or  cruise ship passengers                                                               
of up  to two bottles of  distilled spirits or 40  ounces of beer                                                               
with floral arrangements.  Adding  the distilled spirits and beer                                                               
language  to  the current  statute  will  capture all  consumable                                                               
alcohol products currently for sale.   He noted that for purposes                                                               
of the  Alcoholic Beverage Control  Board (ABC)  regulations beer                                                               
would also  include any malt  beverages.  Mr. Letch  related that                                                               
this  legislation builds  on  HB 69  of  the Twenty-First  Alaska                                                               
State Legislature, which was amended  to allow the delivery of up                                                               
to two bottles  of wine and champagne with  a floral arrangement.                                                               
This  legislation,  SB 194,  would  open  opportunities for  some                                                               
additional  business, particularly  in areas  where cruise  ships                                                               
come.  In response to  Representative Rokeberg, Mr. Letch related                                                               
that  the  40 ounce  amount  was  recommended  by the  ABC  Board                                                               
because it represents  two 20 ounce bottles.  The  ABC Board said                                                               
that  it  would  entertain  the  ability to  set  the  amount  by                                                               
regulations, but  the sponsor  felt that  a gift-sized  bottle of                                                               
beer would be appropriate.                                                                                                      
                                                                                                                                
REPRESENTATIVE DAHLSTROM inquired as  to why this legislation was                                                               
introduced.                                                                                                                     
                                                                                                                                
MR. LETCH reiterated that this  legislation further expands HB 69                                                               
of  the   Twenty-First  Alaska   State  Legislature,   which  was                                                               
introduced because a floral business  in Seward wanted to deliver                                                               
gift baskets with  champagne and wine.  The  same business wanted                                                               
to expand the  aforementioned in order to include  other forms of                                                               
alcohol.   In  further response  to Representative  Dahlstrom, he                                                               
specified that this  would be effective throughout  the state and                                                               
the business would have to obtain  a permit from the ABC Board to                                                               
deliver such gift baskets.                                                                                                      
                                                                                                                                
Number 0957                                                                                                                     
                                                                                                                                
REPRESENTATIVE  CRAWFORD  drew  attention to  the  language  "two                                                               
bottles", which could  refer to one ounce bottles  to half gallon                                                               
bottles.   Therefore,  he asked  whether the  language should  be                                                               
tightened.                                                                                                                      
                                                                                                                                
MR. LETCH offered to research  that because the regulations would                                                               
seem to fall under the ABC Board in terms of volume of alcohol.                                                                 
                                                                                                                                
REPRESENTATIVE  CRAWFORD expressed  concern that  a business,  on                                                               
the  pretense  of  supplying flower  arrangements,  could  supply                                                               
alcohol to  young individuals.   He said  that he didn't  want to                                                               
open the door to abuses.                                                                                                        
                                                                                                                                
MR. LETCH  confirmed that this  legislation is  merely addressing                                                               
delivery  to  hotel and  cruise  ship  guests.   He  opined  that                                                               
Representative  Meyer's  legislation  would  probably  discourage                                                               
much of the concerns of Representative Crawford.                                                                                
                                                                                                                                
REPRESENTATIVE ROKEBERG reiterated his  concern with the 40 ounce                                                               
specification, and  indicated his  size preference of  72 ounces.                                                               
He  questioned  whether the  Alaska  Brewing  Company used  these                                                               
sizes.                                                                                                                          
                                                                                                                                
MR. LETCH  said that he  would entertain any sizes  the committee                                                               
would desire.                                                                                                                   
                                                                                                                                
Number 1241                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GATTO asked  if  this legislation  refers to  one                                                               
delivery per passenger, port, day, et cetera.                                                                                   
                                                                                                                                
MR. LETCH opined that it's  a relatively low volume business with                                                               
one visit per customer.  However,  he offered to review this with                                                               
the ABC Board.                                                                                                                  
                                                                                                                                
REPRESENTATIVE GATTO  related his understanding that  the federal                                                               
government used to allow infants  into the country with a certain                                                               
amount of alcohol.                                                                                                              
                                                                                                                                
Number 1302                                                                                                                     
                                                                                                                                
REPRESENTATIVE   ROKEBERG   moved   that  the   committee   adopt                                                               
Conceptual Amendment 1, as follows:                                                                                             
                                                                                                                                
     Page 1, line 1;                                                                                                            
          Delete "40"                                                                                                         
          Insert "72"                                                                                                           
                                                                                                                                
     Page 1, line 1;                                                                                                            
          Delete "and"                                                                                                        
          Insert "or"                                                                                                           
                                                                                                                                
     Page 1, line 6                                                                                                             
          Delete "and"                                                                                                      
          Insert "or"                                                                                                           
                                                                                                                                
     Page 1, line 7;                                                                                                            
          Delete "40"                                                                                                       
          Insert "72"                                                                                                           
                                                                                                                                
REPRESENTATIVE GATTO moved that  the committee adopt an amendment                                                               
to Conceptual  Amendment 1, such  that the language  "bottles" be                                                               
changed to "liters".   He opined, "Typically  speaking people who                                                               
are buying a special brew or  something, are not buying it by the                                                               
gallon, they're generally  going for a special bottle  of wine or                                                               
something like that."                                                                                                           
                                                                                                                                
REPRESENTATIVE ROKEBERG  commented that  although there  seems to                                                               
be a shift with regard to  the availability of fifths, or liters,                                                               
the predominant measurement of sale in the U.S. is the fifth.                                                                   
                                                                                                                                
REPRESENTATIVE  GATTO   withdrew  his  amendment   to  Conceptual                                                               
Amendment 1.                                                                                                                    
                                                                                                                                
[Conceptual Amendment 1 was treated as adopted.]                                                                                
                                                                                                                                
MR.  LETCH, in  response to  Representative Dahlstrom,  confirmed                                                               
that the House Labor and  Commerce Standing Committee is the only                                                               
committee of referral for SB 194, which has a zero fiscal note.                                                                 
                                                                                                                                
Number 1498                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG  moved  to   report  CSSB  194(FIN),  as                                                               
amended,  out of  committee with  individual recommendations  and                                                               
the accompanying  zero fiscal  note.   There being  no objection,                                                               
HCS CSSB 194(L&C) was reported  from the House Labor and Commerce                                                               
Standing Committee.