Legislature(2019 - 2020)BARNES 124

05/08/2019 03:15 PM House LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 4:00 pm --
+= SB 83 TELECOMMUNICATIONS REGULATION/EXEMPTIONS TELECONFERENCED
Heard & Held
-- Public Testimony --
+= SB 16 ALCOHOL LIC:FAIRS,THEATRES,CONCERTS;BONDS TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 97 TELEHEALTH: PHYSICIAN ASSISTANTS; DRUGS TELECONFERENCED
Moved CSHB 97(L&C) Out of Committee
        SB 16-ALCOHOL LIC:FAIRS,THEATRES,CONCERTS;BONDS                                                                     
                                                                                                                                
4:04:36 PM                                                                                                                    
                                                                                                                                
CHAIR WOOL  announced that the  first order of business  would be                                                               
SENATE  BILL  NO.  16,  "An Act  relating  to  certain  alcoholic                                                               
beverage  licenses   and  permits;  and  relating   to  the  bond                                                               
requirement for certain alcoholic beverage license holders."                                                                    
                                                                                                                                
4:04:56 PM                                                                                                                    
                                                                                                                                
ASHLEY   STRAUCH,  Staff,   Representative  Wool,   Alaska  State                                                               
Legislature, introduced the committee  substitute (CS) for SB 16,                                                               
Version 31-LS0283\O,  and explained  the changes.   She  said the                                                               
scope of a  fair license was narrowed, allowing  only a nonprofit                                                               
that has  been in existence for  five years, as of  the effective                                                               
date of  the act,  to apply for  the license.   The scope  of the                                                               
definition of  "fair" was narrowed  by removing the  language "or                                                               
outdoor  entertainment."   She stated  that the  conditions under                                                               
which a  minor may be  on the  licensed premises of  a performing                                                               
arts theater was  clarified to allow minors 16 years  or older to                                                               
be  in the  presence of  alcohol at  a theater  event and  allows                                                               
minors under the age of 16 to  be on the licensed premises of the                                                               
theater with an  adult 21 years of  age or older.   She said that                                                               
mirrors the current statute regarding  golf courses and works the                                                               
same as a restaurant designation.   Bowling was added to the list                                                               
of activities allowable  under a recreational site  license.  The                                                               
hours that  a restaurant can  provide music were increased  to 11                                                               
a.m. to  11 p.m.   Sporting events were delineated  from sporting                                                               
activities under  the recreational site  license.  A  pub license                                                               
was  added as  carryover from  SB  52.   The number  of events  a                                                               
nonprofit can hold  was changed from 12 to 5.   Finally, "concert                                                               
permit"  and  "music  festival  permit"  were  removed  from  the                                                               
original bill.                                                                                                                  
                                                                                                                                
4:07:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN asked what a "pub license" is.                                                                            
                                                                                                                                
CHAIR WOOL explained that a pub  license is used for the [Alaska]                                                               
university system.  He said it  was adopted from a section in the                                                               
Title  4  omnibus bill  that  allowed  the University  of  Alaska                                                               
Fairbanks (UAF)  to use their pub  license for the museum  in the                                                               
summer months.                                                                                                                  
                                                                                                                                
REPRESENTATIVE HANNAN asked if there was only one pub license.                                                                  
                                                                                                                                
4:08:40 PM                                                                                                                    
                                                                                                                                
MS.  STRAUCH offered  her understanding  that there  is currently                                                               
only one pub license at the UAF campus.                                                                                         
                                                                                                                                
4:08:53 PM                                                                                                                    
                                                                                                                                
ERIKA MCCONNEL,  Director, Alcohol and Marijuana  Control Office,                                                               
confirmed that.                                                                                                                 
                                                                                                                                
4:09:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES inquired  as  to the  four  events that  a                                                               
nonprofit can hold.                                                                                                             
                                                                                                                                
MS. STRAUCH clarified that it's  five events, which is the number                                                               
of events  that a nonprofit  can hold  per year where  alcohol is                                                               
served.  She  noted that the original version of  this bill would                                                               
have increased that  to 12 events per year;  however, this change                                                               
brings that number back down to current statute, which is five.                                                                 
                                                                                                                                
REPRESENTATIVE  STUTES  questioned   whether  any  nonprofit  can                                                               
submit an application the ABC  board without having an associated                                                               
beverage dispensary license (BDL).                                                                                              
                                                                                                                                
MS. STRAUCH said that is her understanding.                                                                                     
                                                                                                                                
4:09:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS  sought clarification on  the "Chickenstock                                                               
situation" and  what it will  take for that festival  to continue                                                               
operating.                                                                                                                      
                                                                                                                                
CHAIR WOOL said  the music festival would be  addressed after the                                                               
CS is adopted.                                                                                                                  
                                                                                                                                
REPRESENTATIVE  TALERICO questioned  whether the  CS removes  the                                                               
concert permit and music festival permit.                                                                                       
                                                                                                                                
CHAIR WOOL confirmed that the CS removes that language.                                                                         
                                                                                                                                
4:11:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES  moved  to adopt  the  proposed  committee                                                               
substitute (CS)  for SB 16,  labeled 31-LS0283\O,  Bruce, 5/4/19,                                                               
as the working draft.                                                                                                           
                                                                                                                                
REPRESENTATIVE TALERICO objected.                                                                                               
                                                                                                                                
A  roll call  vote  was taken.    Representatives Story,  Fields,                                                               
Hannan, Stutes, and Wool voted  in favor of adopting the proposed                                                               
CS.    Representatives  Revak  and  Talerico  voted  against  it.                                                               
Therefore, Version O was before the committee by a vote of 5-2.                                                                 
                                                                                                                                
CHAIR WOOL turned attention to public testimony.                                                                                
                                                                                                                                
4:12:43 PM                                                                                                                    
                                                                                                                                
CODIE  COSTELLO,  VP   Strategic  Development  &  Communications,                                                               
Alaska Center for the Performing  Arts, expressed her support for                                                               
SB 16  and thanked members for  their hard work on  this piece of                                                               
legislation.                                                                                                                    
                                                                                                                                
4:13:23 PM                                                                                                                    
                                                                                                                                
MAHLA STROHMAIER,  Executive Director,  Tanana Valley  State Fair                                                               
Association, voiced  her support  for SB  16 because  it provides                                                               
greater clarity and  consistency in state law  and enables Alaska                                                               
fair   organizations  to   continue   building  their   long-term                                                               
financial  sustainability.    She  provided  a  brief  historical                                                               
background of the Tanana Valley  State Fair, noting that the fair                                                               
is  self-sustaining  and  operates  on a  combination  of  earned                                                               
income  from  ticket  sales, vendor  fees,  building  and  ground                                                               
rentals, grants,  and sponsorships.   She stated  that consistent                                                               
and  standardized  alcoholic  beverage licensing  and  permitting                                                               
under  Alaska  statutes  offers   Alaska  fairs  the  ability  to                                                               
generate   important    earned   revenue   that    allows   those                                                               
organizations to  build, maintain and enhance  their abilities to                                                               
be more sustainable and financially  self-supporting.  The Tanana                                                               
Valley State Fair's  current business model as it  relates to the                                                               
sale  of alcohol,  she said,  involves contracting  with a  local                                                               
business that utilizes its own  liquor license and taking a small                                                               
portion  of their  sales as  earned  income.   She addressed  the                                                               
fair's  5-year  strategic plan  based,  in  part, on  making  the                                                               
fairground a  year-round community destination.   She offered her                                                               
belief that clarifying  Alaska's statute for fairs  through SB 16                                                               
will  provide  the  Tanana Valley  State  Fair  Association  with                                                               
essential  options  as  they  continue   to  grow  its  long-term                                                               
financial viability and overall sustainability.                                                                                 
                                                                                                                                
4:16:12 PM                                                                                                                    
                                                                                                                                
ROBERT  BREWSTER, CEO,  The Alaska  Club, informed  the committee                                                               
that The Alaska Club has  been a recreational site license holder                                                               
at  their 21  and over  summit location  for eight  years, during                                                               
which  they had  never  been  cited for  any  violations and  had                                                               
complied with all applicable regulations  and fees.  He said they                                                               
worked with  an Alcohol  Beverage Control  Board staff  member to                                                               
obtain  their  recreational  site  license  and  relied  on  that                                                               
qualification to construct their  premises, define their product,                                                               
and make  representations that beer  and wine would  be available                                                               
to members.   Two years ago,  that license was terminated  by the                                                               
ABC Board only  to be won back  in an appeal process.   This year                                                               
their  renewal was  once  again denied.   He  asked  for help  in                                                               
correcting the  unfortunate outcome of these  non-renewals, which                                                               
serve  no  valid  public  purpose  and  are  harming  responsible                                                               
businesses.  He encouraged the passage of SB 16.                                                                                
                                                                                                                                
4:19:13 PM                                                                                                                    
                                                                                                                                
SARAH  OATES, President/CEO,  Alaska  Cabaret, Hotel,  Restaurant                                                               
and  Retailers   Association,  disclosed  her   prior  experience                                                               
working for  the Alcohol  and Beverage  Control Office  for seven                                                               
years.   She  voiced support  for  the proposed  CS for  numerous                                                               
reasons.  She  said the prior version of the  bill worked against                                                               
the work  that the Title  4 stakeholders' group has  been working                                                               
on, while  the CS sticks  to their  objective.  She  also praised                                                               
the deletion  of the  music festival  permit and  concert permit.                                                               
She opined  that it is  irresponsible and inappropriate  to adopt                                                               
legislation  that   affects  only  one  entity   when  that  same                                                               
legislation could  negatively impact  many other  entities across                                                               
the  state.   She  expressed support  for  grandfathering in  the                                                               
existing licensees and  those who lost their licenses  due to the                                                               
recreational site language.                                                                                                     
                                                                                                                                
4:23:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   FIELDS   asked   for   more   clarification   on                                                               
Chickenstock.  He explained that there  is an existing BDL from a                                                               
local business  in Chicken, Alaska,  and asked how  that business                                                               
could work  with people  putting on the  festival to  ensure that                                                               
beverages could be dispensed.                                                                                                   
                                                                                                                                
MS.  OATES   offered  her  belief  that   the  existing  beverage                                                               
dispensary   licensee   in  Chicken   has   worked   to  put   on                                                               
Chickenstock.    She reiterated  that  the  way the  language  is                                                               
written  would   affect  many  more  businesses   than  just  one                                                               
individual  festival in  Chicken,  Alaska.   She  added that  the                                                               
restaurateur  who  is  requesting  this change  already  has  the                                                               
current capability to put on the  festival by providing food in a                                                               
banquet or dinner during the festival.                                                                                          
                                                                                                                                
REPRESENTATIVE FIELDS  asked if they  could partner with  a local                                                               
bar for a caterer's [permit] if they wanted to serve alcohol.                                                                   
                                                                                                                                
MS. OATES answered yes.                                                                                                         
                                                                                                                                
4:24:50 PM                                                                                                                    
                                                                                                                                
CHAIR WOOL asked how [Salmonfest Alaska] currently operates.                                                                    
                                                                                                                                
MS. OATES  offered her belief  that they have a  nonprofit entity                                                               
that qualifies for a special events permit.                                                                                     
                                                                                                                                
4:25:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN  inquired as to  the process of  catering a                                                               
music festival with either a restaurant license or a full BDL.                                                                  
                                                                                                                                
MS.  MCCONNELL  replied  that  there is  a  caterer's  permit  in                                                               
statute that  authorizes a beverage dispensary  licensee (BDL) to                                                               
sell or  dispense alcoholic beverages at  conventions, picknicks,                                                               
social gatherings,  sporting events  or similar affairs  held off                                                               
the  holders  licensed  premises.   She  said  a  festival  could                                                               
partner with  a BDL  to get  a caterer's permit  to sell  at that                                                               
particular event.                                                                                                               
                                                                                                                                
4:27:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN  sought  clarification on  whether  a  BDL                                                               
would allow a caterer to operate  at a music festival.  She asked                                                               
if there  are any geographic  restrictions on how close  to their                                                               
BDL premises they can operate.                                                                                                  
                                                                                                                                
MS. MCCONNELL  explained that  a music  festival would  fall into                                                               
the same category as the  convention, picknick, social gathering,                                                               
or sporting  event, as  listed in  AS 411.230  (a).   She further                                                               
noted that there is no geographic proximity requirement.                                                                        
                                                                                                                                
REPRESENTATIVE  HANNAN asked  if a  bar owner  from Kodiak  could                                                               
sell beer at a festival in Chicken, Alaska.                                                                                     
                                                                                                                                
MS. MCCONNELL answered yes.                                                                                                     
                                                                                                                                
4:28:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS  addressed the effect  of the CS  on Arctic                                                               
Valley  Ski Area  and  Eagle Crest  Ski Area  and  asked if  both                                                               
locations  will  be places  where  it's  appropriate to  dispense                                                               
alcoholic beverages.                                                                                                            
                                                                                                                                
MS. MCCONNELL said yes.                                                                                                         
                                                                                                                                
CHAIR  WOOL  sought  clarification   on  restrictions  placed  on                                                               
restaurant  or  eating  place licenses  regarding  percentage  of                                                               
sales.                                                                                                                          
                                                                                                                                
MS. MCCONNELL  stated that a  restaurant or eating  place license                                                               
is in  statute at  AS 04.11.100 and  authorizes the  following: a                                                               
restaurant or  eating place  may only  to sell  beer or  wine for                                                               
consumption  on  the  licensed   premises;  must  be  a  bonified                                                               
restaurant,  as  determined  by   the  board;  and  must  provide                                                               
evidence upon renewal  that gross receipts from the  sale of food                                                               
upon the  licensed premises constitutes  no less than  50 percent                                                               
of the gross receipts for the entire licensed premises.                                                                         
                                                                                                                                
CHAIR  WOOL established  a  scenario in  which  a music  festival                                                               
sells $100,000  in beer and wine  over one weekend.   He asked if                                                               
they would  have to sell  $100,000 in food  over the rest  of the                                                               
year to satisfy that regulation.                                                                                                
                                                                                                                                
MS. MCCONNELL  referred to AS  04.11.100 (e), and  said depending                                                               
on  what  a  music  festival   caterer  permit  said,  she  would                                                               
interpret it  to mean that  any receipts  from a festival  off of                                                               
the licensed  premises wouldn't count  towards the  receipts that                                                               
are required in 04.11.100 (e).                                                                                                  
                                                                                                                                
CHAIR WOOL disclosed  that he is longer in  the alcohol business,                                                               
adding that  last year, when he  was in the alcohol  business, he                                                               
did not pay himself.                                                                                                            
                                                                                                                                
4:32:34 PM                                                                                                                    
                                                                                                                                
JEROME HERTEL, Manager, Alaska State  Fair, thanked the committee                                                               
for the  opportunity to testify in  support of SB 16,  calling it                                                               
legislation  that  creates  a  fair  license  category  and  will                                                               
correct some of the shortfalls  of Alaska's current statutes that                                                               
apply  to  alcoholic beverages.    He  added  that it  will  also                                                               
correct the problematic situation that  the Alaska State Fair has                                                               
experienced.  This  piece of legislation, he  said, will provides                                                               
much needed clarity and understanding to  the fair, as well as to                                                               
the  Alaska Beverage  Control agency  that  is in  charge of  the                                                               
application of  the law.   Without  this legislation,  the Alaska                                                               
State  Fair is  at risk  of losing  a revenue  source that  would                                                               
jeopardize the sustainability  of the fair.  Beer  and wine sales                                                               
are  an important  part  of  the experience  and  are  part of  a                                                               
diversified  revenue stream  that sustains  the operation  in bad                                                               
years  and  allows growth  in  prosperous  years.   This  revenue                                                               
stream has allowed the fair to  be self-sustaining, one of few in                                                               
the  nation that  isn't subsidized  by state  government.   SB 16                                                               
preserves the  fair's sustainability and allows  them to continue                                                               
serving the people of Alaska.                                                                                                   
                                                                                                                                
4:35:18 PM                                                                                                                    
                                                                                                                                
MARNA SANFORD expressed her disappointment  with the proposed CS,                                                               
which  removes the  music  festival language.    She offered  her                                                               
belief that  the "fair  bill" was written  to impact  one entity.                                                               
Chickenstock, she said, is a  family friendly event that has been                                                               
operating for over a decade;  however, with different Alcohol and                                                               
Marijuana  Control Office  (AMCO)  directors  and with  different                                                               
interpretations  of the  current  statute, they  went from  being                                                               
able to  use one type of  a permit to  not being able to  use it.                                                               
She noted that it's more  complicated than asking the current BDL                                                               
holder in chicken  to use that license.  She  concluded by saying                                                               
that she  does support the version  of the bill that  came out of                                                               
the Senate Finance  Committee; however, she does  not support the                                                               
proposed CS.                                                                                                                    
                                                                                                                                
4:37:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS  asked  why   it's  necessary  to  have  a                                                               
separate music  festival category  rather than contracting  a BDL                                                               
from a local business.                                                                                                          
                                                                                                                                
MS.  SANFORD replied  that Chickenstock  is  the "brainchild"  of                                                               
Chicken Gold Camp & Outpost (CGC).   She said they already have a                                                               
restaurant license, which  they cannot use for  a music festival.                                                               
She opined that making  them pay a BDL holder for  the use of his                                                               
or her license  in order to put on  Chickenstock is capitalistic,                                                               
especially  if there  is the  ability  to create  a license  that                                                               
allows them to own their idea and benefit from it.                                                                              
                                                                                                                                
4:38:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES asked what Chickenstock is.                                                                               
                                                                                                                                
MS. SANFORD said  it is a family friendly music  festival at CGC,                                                               
an RV  park in Chicken, Alaska.   She explained that  people from                                                               
all  over  the state  travel  there  and  camp  on site  for  the                                                               
festival, which has been in existence for 12 years.                                                                             
                                                                                                                                
CHAIR WOOL expressed  confusion as to why they  can't continue to                                                               
use the  same BDL, from  Bernie Karl  at Chena Hot  Springs, that                                                               
they have using for the last 12 years.                                                                                          
                                                                                                                                
MS. SANFORD said they have been  borrowing a BDL from Bernie Karl                                                               
since the  change in leadership  at AAMCO, which  interpreted the                                                               
law differently.  She noted that  they do not have a relationship                                                               
with  the local  BDL  holder  in Chicken,  Alaska.   She  further                                                               
stated that  borrowing a BDL  is not  the ideal situation  when a                                                               
permit could be created that  allows them to operate within their                                                               
own umbrella.                                                                                                                   
                                                                                                                                
CHAIR WOOL asked Ms. McConnel for her input on Chickenstock.                                                                    
                                                                                                                                
4:42:03 PM                                                                                                                    
                                                                                                                                
MS. MCCONNELL  offered her understanding that  [Chickenstock] was                                                               
being  catered under  a restaurant  caterer's dinner  permit, and                                                               
that  the  previous AAMCO  director  determined  it was  not  the                                                               
appropriate permit  for that  festival, which  is why  the change                                                               
happened in 2016.   She further stated that she  agrees with that                                                               
decision.                                                                                                                       
                                                                                                                                
4:42:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS said he sees  both sides of the problem and                                                               
asked  how it  could be  solved without  a "sweeping  legislative                                                               
fix" that is poorly thought out on either end of the spectrum.                                                                  
                                                                                                                                
MS.  MCCONNELL pointed  out that  they  have worked  successfully                                                               
with a  BDL out of  Chena Hot Springs  for the last  three years.                                                               
She  noted that  she is  not privileged  to the  details of  that                                                               
relationship.   She further noted  that the board hasn't  taken a                                                               
position on this issue, and because  she works for the board, she                                                               
is hesitant to insert an opinion.                                                                                               
                                                                                                                                
REPRESENTATIVE FIELDS deduced that  the takeaway is that festival                                                               
operators need to shop around for a BDL from someone.                                                                           
                                                                                                                                
MS.  MCCONNELL said  that would  be consistent  with the  current                                                               
statutes and regulations.                                                                                                       
                                                                                                                                
CO-CHAIR WOOL asked how many  restaurant or eating place licenses                                                               
(REPLs) exist.                                                                                                                  
                                                                                                                                
MS. MCCONNELL answered 386.                                                                                                     
                                                                                                                                
4:44:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STORY   inquired  as   to  the  process   for  an                                                               
establishment to work with a BDL license holder.                                                                                
                                                                                                                                
MS.  MCCONNELL  said AAMCO  will  receive  an application  for  a                                                               
caterer's permit  from a BDL,  which is then evaluated  to ensure                                                               
that the sale  and service of alcohol is  compliant with statutes                                                               
and regulations.                                                                                                                
                                                                                                                                
MS.   MCCONNELL,  responding   to  a   follow-up  question   from                                                               
Representative Story, said there  are approximately six different                                                               
permit  types  in  statute  that   allow  the  sale  of  alcohol:                                                               
caterer's  permit, special  events  permit, restaurant  caterer's                                                               
dinner permit,  club license  caterer's permit,  theatre license,                                                               
art exhibit permit, and wine auction permit.                                                                                    
                                                                                                                                
REPRESENTATIVE STORY  asked which  two options are  available for                                                               
Chickenstock.                                                                                                                   
                                                                                                                                
CHAIR  WOOL  offered  his  understanding that  the  BDL  or  food                                                               
banquet option would apply.                                                                                                     
                                                                                                                                
4:48:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS  asked if there  is a third option  for the                                                               
RV owners to  establish a nonprofit to allow a  festival on their                                                               
premises.                                                                                                                       
                                                                                                                                
MS.  MCCONNELL  said special  events  permits  are available  for                                                               
eligible  nonprofits that  have been  active for  a period  of at                                                               
least 2 years before the time of application.                                                                                   
                                                                                                                                
4:49:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES  asked if there was  anything under statute                                                               
for an art exhibit.                                                                                                             
                                                                                                                                
MS. MCCONNELL replied  that in that section  of regulations, "art                                                               
exhibit event" means  a public event involving an  art display or                                                               
similar activity approved  by the Board that is held  on a single                                                               
date at one  or more art galleries, art studios,  art stores, art                                                               
dealer stores,  or museum.   She  offered her  understanding that                                                               
this permit was created for First Friday type of events.                                                                        
                                                                                                                                
4:50:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN asked  if a caterer's permit  can be issued                                                               
with  a BDL  for any  location with  no food  restrictions; while                                                               
catering with a REPL requires the provision of a full meal.                                                                     
                                                                                                                                
MS.  MCCONNELL said  yes, they  must  be providing  a banquet  or                                                               
dinner event.                                                                                                                   
                                                                                                                                
4:51:05 PM                                                                                                                    
                                                                                                                                
PAUL THOMAS, Owner,  Alaska Cache Liquor, pointed  out that Title                                                               
4 is  trying to par down  all the special, one-off  licenses.  He                                                               
opined that  the best part  of SB 16  is the grandfathering.   He                                                               
discussed the  change to  the recreational  site license  and the                                                               
need to be language specific with the addition of skiing.                                                                       
                                                                                                                                
CHAIR WOOL acknowledged  that they put in language  to narrow the                                                               
focus of what a ski area is.                                                                                                    
                                                                                                                                
4:54:37 PM                                                                                                                    
                                                                                                                                
JACK  MANNING, Owner,  Duck  Creek  Market, reminded  legislators                                                               
that there is  another bill that has been in  the works for years                                                               
now, which makes a  big change to Title 4.   He voiced his strong                                                               
support for the grandfathering, which will  take care of a lot of                                                               
problems for the licenses that are not getting renewed.                                                                         
                                                                                                                                
4:55:34 PM                                                                                                                    
                                                                                                                                
LEEANN THOMAS, Owner, Triangle Bar,  said exit plans for business                                                               
owners are important because they  work hard for their businesses                                                               
and want something  to be able to  sell at the end.   She said SB
16  has  solved some  of  those  problems  and she  supports  the                                                               
grandfathering.    She  addressed  the  need  for  more  specific                                                               
language when defining  a ski area and bowling  alley to maintain                                                               
a regulated  industry.  She pointed  out that in the  proposed CS                                                               
the   word  "activity"   is  substituting   the  original   word,                                                               
"recreation," which she said she does not like.                                                                                 
                                                                                                                                
CHAIR WOOL clarified  that some are delineated  events and others                                                               
are delineated activities, like skiing and bowling.                                                                             
                                                                                                                                
MS. THOMAS expressed further concern  with the earlier start time                                                               
for entertainment at REPLs.                                                                                                     
                                                                                                                                
5:00:49 PM                                                                                                                    
                                                                                                                                
JERAD  CURE,  Owner,  The Narrows,  expressed  his  concern  with                                                               
changes to the  recreational site license.  He  said that "loose"                                                               
language allowing  anyone with  recreational activities  to apply                                                               
for a liquor license will create  more issues than it solves.  He                                                               
addressed the grandfathering  and said he agrees  with saving the                                                               
license  of  businesses that  have  been  in operation  for  many                                                               
years.    Nonetheless, he  opined  that  not all  bowling  alleys                                                               
should  be  allowed to  have  a  liquor  license.   He  expressed                                                               
further concern with "loose" language  regarding the fair license                                                               
and which activities  constitute a fair.  He pointed  out that he                                                               
relies  on   catering  during  the   slower  months   to  provide                                                               
additional  revenue  for  his  business and  to  keep  his  staff                                                               
employed.  He offered his  belief that allowing anyone throwing a                                                               
concert to  apply for these permits  would be a nightmare  for an                                                               
already overwhelmed AAMCO  permit staff and would  be a detriment                                                               
to the health and safety of the consumer.                                                                                       
                                                                                                                                
5:02:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN   noted  that  Mr.  Cure   expressed  some                                                               
expertise in  using his BDL to  be a caterer offsite.   She asked                                                               
how far from his licensed premises he would be willing to cater.                                                                
                                                                                                                                
MR. CURE  replied that  he uses his  catering permit  anywhere in                                                               
Juneau.                                                                                                                         
                                                                                                                                
MR. CURE, responding to a  follow-up question from Representative                                                               
Hannan, said  that there  are probably plenty  of BDLs  closer to                                                               
[Chicken, Alaska] that would be willing  to take on that job.  He                                                               
offered that the  issue isn't getting the permit,  it's that they                                                               
want the money  from the alcohol.   To that end, he  said that he                                                               
paid  $250,000  to   make  money  off  alcohol   and  that  other                                                               
businesses can do the same or find a business to contract with.                                                                 
                                                                                                                                
5:04:31 PM                                                                                                                    
                                                                                                                                
GEORGE   TIPTON,  Ketchikan   Cabaret,   Hotel,  and   Restaurant                                                               
Retailers Association,  stated that  he agrees  with some  of the                                                               
changes in the  proposed CS.  He noted that  adding on additional                                                               
license types continues  to do the same thing as  what Title 4 is                                                               
trying  to restrict.    He  said that  by  adding  on, this  bill                                                               
creates short  term, impulsive solutions  for license  and permit                                                               
types.    Overall,  he  said  the  CS is  a  step  in  the  right                                                               
direction.                                                                                                                      
                                                                                                                                
5:07:21 PM                                                                                                                    
                                                                                                                                
MACEY SHAPIRO, Hatcher Alpine Xperience,  announced that they are                                                               
building a  ski area in Hatcher  Pass, Alaska.  While  they build                                                               
their  business plan,  he said  it's  important to  find as  many                                                               
revenue streams  as possible.  One  of which, is a  beer and wine                                                               
license.   He  pointed out  that in  the working  draft, ski  and                                                               
snowboard   areas   would    specifically   be   included   under                                                               
recreational site licenses  and Hatcher would like  to solicit an                                                               
endorsement of  this category of  beer and wine licenses  for ski                                                               
and snowboard  areas in the state.   In return, he  said, Hatcher                                                               
pledges responsible  management of  the serving of  any alcoholic                                                               
beverage to  the highest standards,  and reciprocally,  the state                                                               
would be providing an avenue to  assist families and youth into a                                                               
sport that promotes a healthy lifestyle.                                                                                        
                                                                                                                                
CHAIR WOOL closed public testimony.                                                                                             
                                                                                                                                
5:09:31 PM                                                                                                                    
                                                                                                                                
SENATOR  PETER  MICCICHE,  Alaska  State  Legislature,  as  prime                                                               
sponsor of  SB 16, addressed the  CS and said he  supports nearly                                                               
all  the changes.   He  said this  bill was  designed to  protect                                                               
business owners  that have been  operating for years.   He opined                                                               
that  "fair"  is  well  defined and  thanked  the  committee  for                                                               
leaving  in the  grandfathering.   Renewal  and  transfer of  the                                                               
licenses are two important parts  of the grandfathering, he said.                                                               
He  noted the  change  to a  period  of five  years  on the  fair                                                               
license, which keeps brand new fairs  from popping up.  He turned                                                               
attention to Chickenstock and said it  has not been as easy as it                                                               
seems.  The license that they  have been borrowing is hundreds of                                                               
miles away and has been a  challenge.  He said there are creative                                                               
options  that   could  be  considered,  such   as  extending  the                                                               
circumference for  an REPL to  serve one event  per year up  to x                                                               
days  that has  been  in existence  for  10 years  or  more.   He                                                               
emphasized  that  this  bill  must   pass  to  save  a  score  of                                                               
businesses that are at risk right now.                                                                                          
                                                                                                                                
CHAIR WOOL pointed  out that with nearly 400  REPLs in existence,                                                               
allowing them to put on music festivals could upset the balance.                                                                
                                                                                                                                
SENATOR MICCICHE clarified that he  suggested a stipulation of at                                                               
least 10  years of  existence so that  400 music  festivals could                                                               
not pop up around the state.                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES voiced  her appreciation  for the  idea of                                                               
REPLs making an accommodation for the event in Chicken.                                                                         
                                                                                                                                
5:14:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS agreed that  there should be something done                                                               
to accommodate that festival.                                                                                                   
                                                                                                                                
5:14:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STORY referenced page 2  of bill and asked for the                                                               
rationale behind the change from 3 p.m. to 11 a.m.                                                                              
                                                                                                                                
CHAIR WOOL said  it was for a local business  that wanted to have                                                               
music at  lunch.   Nonetheless, he said  he agrees  that changing                                                               
laws for one specific business  could get complicated and lead to                                                               
150 different types of licenses, for example.                                                                                   
                                                                                                                                
5:15:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN  asked how many  of the REPLs  are seasonal                                                               
locations only.                                                                                                                 
                                                                                                                                
MS. MCCONNELL answered 52 of the 386 REPLs are seasonal.                                                                        
                                                                                                                                
5:17:22 PM                                                                                                                    
                                                                                                                                
CHAIR WOOL announced that SB 16 was held over.                                                                                  

Document Name Date/Time Subjects
SB 16.Sponsor.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Bill Version G.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Bill Version O.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Summary of Changes to Version G.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Sectional.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Fiscal REV.PDF HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Fiscal DCCED AMCO.PDF HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Supporting Doc AMCO.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support State Fair.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support Price.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support PAC.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support KTVA Article.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support KTUU.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support KTOO2.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support KTOO.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support KINY Article.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support Herrington.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support Gilmore.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support Frontiersman Article.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support Eaglecrest.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support CER STAR.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support CER STAR2.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support ATA.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support AP Article.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support Alaska Club.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support ADN Article3.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support ADN Article2.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support ADN Article.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Letter from CHARR.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Letter ATA2.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Leg Audit.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Leg Audit 2014.pdf HL&C 5/8/2019 3:15:00 PM
SB 16