Legislature(2007 - 2008)CAPITOL 17
01/29/2007 03:00 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB34 | |
| HB49 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 34 | TELECONFERENCED | |
| *+ | HB 49 | TELECONFERENCED | |
HB 34-SALES BY WINERY LICENSEE CHAIR OLSON announced that the first order of business would be HOUSE BILL NO. 34 "An Act relating to sales of wine by a winery licensee." 3:08:06 PM CHRISTINE MARASIGAN, Staff to Representative LeDoux, Alaska State Legislature, began by stating that HB 34 encourages wine production in Alaska. Alaskan wineries are small "mom and pop" businesses. The intention of HB 34 is to create a level playing field, in order for in-state wineries to complete with those out-of-state. 3:09:23 PM REPRESENTATIVE GARDNER commented that HB 34 "makes a lot of sense." She inquired as to whether the sponsor is aware of any private organizations in opposition to the bill. MS. MARASIGAN replied that there is concern regarding the phone and internet sale of alcohol. She opined that this is a "very valid" concern; however, research done [by the Federal Trade Commission] on the recent supreme court decision regarding "interstate" wine sales versus "intrastate" wine sales, has shown that the purchase of wine by minors is unlikely. 3:10:51 PM REPRESENTATIVE GATTO offered his understanding that currently, five gallons or less may be sold on the premises or to a person out-of-state. HB 34 would allow off-premises sales to persons within the state of Alaska. Referring to a small winery in Kodiak, he commented that HB 34 would allow a person to call the aforementioned winery and order a bottle of wine to be shipped. MS. MARASIGAN replied that this is correct. 3:12:00 PM STEVE THOMSEN, Owner, Alaska Wilderness Wines, stated that he is in favor of HB 34, adding that it "would be a great help." In regard to a previous question regarding out-of-state sales, he stated that currently, this is not allowed. He said "The state has said they won't prosecute it ... but ... nobody will ship it, because it is technically still against the law." 3:13:03 PM CHAIR OLSON offered his understanding that a person can purchase wine on the premises and take it home; however, if more wine is requested later, legal shipment of the wine is unavailable. MR. THOMSEN replied that this is correct. He explained that the current language states that in order for the sale to occur, the individual must be "on the licensed premises." REPRESENTATIVE GATTO noted that the bill contains references to "more than five gallons," along with "not more than five gallons." He requested clarification regarding the problem that is occurring. MR. THOMSEN replied that "not more than five gallons" applies to individual buyers, while "more than five gallons" applies to a person who holds a liquor license, such as a liquor distributor. REPRESENTATIVE GATTO brought attention to the use of "or" in line 13 of the bill, and opined that this would not be limited to "licensed individuals." 3:15:34 PM MR. THOMSEN replied that according to federal law, this would still only apply to licensed individuals. REPRESENTATIVE GATTO commented that HB 34 only applies to state law. He asked for clarification as to whether federal law allows the sale of more than five gallons to an individual who does not hold a liquor license. MR. THOMSEN replied that the Alcoholic Beverage Control Board ("ABC Board") has interpreted this to mean "only licensees." 3:16:49 PM DOUGLAS "DOUG" GRIFFIN, Director, Alcoholic Beverage Control Board ("ABC Board"), Department of Public Safety (DPS), in regard to the aforementioned question, agreed that the language is confusing. He explained that usually, quantities over five gallons would be to a wholesaler, and is not for personal use. He stated that "licensed under this title" refers to a person licensed in the state of Alaska, while "or in another state or country" would apply to a person licensed in another state or country. He stated that the current law is "somewhat archaic." The concern regarding the sale of alcohol to underage persons is not a concern due to the nature of the product, as well as the price. The wines that will be made in Alaska are unlikely to be considered by underage drinkers. MR. GRIFFIN stated that there is also concern regarding the shipment of alcohol to "dry" communities. He explained that there are laws allowing package stores to ship by written orders, adding that the ABC Board works with packages stores to ensure that they are aware of the communities they may not ship product to. This information would also be shared with the wineries, he said. He opined that the winery products are "less likely to be attractive" to a person attempting to get alcohol to a "dry" community. The ABC Board has no objection to HB 34. 3:21:00 PM REPRESENTATIVE RAMRAS said: I always appreciate it when the ABC Board is contributing to the economic development of our communities, and making it easier for us to conduct commerce, within the parameters and boundaries that we set. And whenever we venture into these - more vague areas, where the line is blurred, I appreciate both the sponsor and the ABC Board helping to clarify that. So that ... all parties who are parcel to the economic transaction can participate and keep it clean. MR. GRIFFIN commented that this is one situation where the government is playing "catch up" with the industry as it grows. REPRESENTATIVE GATTO pointed out that HB 34 does not change line 13, with reference to "another state or country." He stated that this has been allowed and will continue to be allowed. He asked if this is the ABC Boards interpretation. MR. GRIFFIN agreed that this is correct. REPRESENTATIVE GATTO asked whether the ABC Board feels there should be reference to "legal age to purchase." MR. GRIFFIN replied that this is a drafting issue. He pointed out that other provisions in Title 4 contain restrictions regarding "legal age to purchase," although it is possible to insert the aforementioned language into HB 34 for emphasis. He added that the ABC Board would not have a problem with this. 3:25:30 PM MS. MARASIGAN agreed that it is currently illegal for a person less than 21 years of age to purchase alcohol in the state of Alaska. In addition, the statutes affecting breweries and brewpubs do not reemphasize this restriction. REPRESENTATIVE GATTO inquired as to whether every state prohibits the sale of alcohol to individuals who are less than 21 years of age. MS. MARASIGAN offered her understanding that this is correct. MR. GRIFFIN agreed that this is correct. He said "in the area of alcohol law, that's one area that's fairly uniform. Which is ... pretty unusual." 3:27:42 PM REPRESENTATIVE GARDNER moved to report HB 34 out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, HB 34 was reported out of the House Labor and Commerce Standing Committee.
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