Legislature(2023 - 2024)BARNES 124
01/22/2024 03:15 PM House LABOR & COMMERCE
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Audio | Topic |
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Start | |
HB143 | |
HB115 | |
HB192 | |
Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
+= | HB 115 | TELECONFERENCED | |
*+ | HB 192 | TELECONFERENCED | |
+= | HB 143 | TELECONFERENCED | |
+= | HB 159 | TELECONFERENCED | |
+ | TELECONFERENCED |
HB 192-DELIVERY/PICK UP OF ALCOHOL; LICENSING 4:27:21 PM CHAIR SUMNER announced that the final order of business would be HOUSE BILL NO. 192, "An Act relating to curbside pickup of alcoholic beverages sold by a package store; relating to consumer delivery licenses; and providing for an effective date." 4:27:42 PM SARENA HACKENMILLER, Staff, Representative Jesse Sumner, Alaska State Legislature, on behalf of Representative Sumner, prime sponsor, explained that HB 192 would allow package store license holders to sell alcohol via curbside pick-up and delivery. Delivery and curbside pick-up service options boomed during the COVID 19 pandemic. This allowed many Alaska retailers to stay in business and provided a way for consumers to access goods while maintaining distance. At the time statutes prohibiting the pick-up and delivery of alcohol were suspended. 4:28:32 PM MS. HACKENMILLER explained that the statute prohibiting pick-up and delivery of alcohol was suspended by Governor Dunleavy in April 2020 COVID 19 Order of Suspension Number Two. The suspensions were renewed in November 2020 but expired on March 3, 2021. During this one-year period no infractions related to these services were reported. This success shows that Alaska could now administer the suspended laws as Alaska law and allow an avenue for businesses to provide this service to Alaska's citizens. She cited statistics concerning the number of states offering curbside pickup and delivery of alcohol as well as the ages of consumers using this type of service. She pointed out the advantages to retailers and customers. 4:30:09 PM MS. HACKENMILLER presented the sectional analysis for HB 192 [included in the committee packet], which reads as follows [original punctuation provided]: Section 1: AS 04.09.230(e) amends sub-section (4) to add an exception under (h) and implements a requirement for a package store delivery endorsement under AS 04.09.470 or consumer delivery license under AS 04.09.380 for the delivery of alcoholic beverages to a person not present on the licensed premises. Sec. 2. AS 04.09.230(f) is amended to clearly communicate (h) cannot be violated within the amended statute. Sec. 3. AS 04.09.230 is amended by adding new subsections to allow the holder of a package store license to offer curbside pickup of alcoholic beverages if the alcoholic beverage is sealed or package in a closed bottle or can by the manufacturer or sealed, tamper-proofed, and labeled in a growler by the holder. Furthermore, an agent or employee who is not an independent contractor and has completed an alcohol server education course delivers the alcoholic beverage from the licensed premises to the purchaser at the location described in the next paragraph of this sectional analysis and requires the purchaser to provide identification and acceptable proof of age. House Bill 192 also includes the following sub- sections to better define the bill: •The holder designates a parking place less than 225 feet from the entry to the package store premises for pickup of alcoholic beverages. •The transaction is not prohibited under AS 04.16.030 •The holder provides written information regarding the license and curbside pickup on a form prescribed by the director. •The holder consents to an inspection of the area designated for curbside pickup, excluding private vehicles, at all reasonable times and in a reasonable time and in a reasonable manner by an officer or employee charged with enforcing the alcoholic beverage control laws and the regulations of the board or by a peace officer acting in the official capacity of a peace office. Sec. 4. AS 04.09 is amended by adding a new section named "Sec. 04.09.380. Consumer deliver license" which allows the holder of a package store license, or a person who contracts with or employs individuals for the delivery of retail goods to consumers, or an agent, employee, or independent contractor of the holder or person to deliver alcoholic beverages from the license premise of a package store to an individual who is located off the licensed premises. Furthermore, the holder of a consumer license or the agent, employee, or independent contractor of the holder may deliver an alcoholic beverage only to an individual who meets the following criteria: •Is 21 years of age or older •Provides identification and acceptable proof of age under AS 04.21.050(b) •Places the order for purchase of the alcoholic beverage, is designated by the purchaser as a delivery recipient, or is located at the delivery address provided by the purchaser. The holder of a consumer delivery license may deliver an alcoholic beverage outside the hours of operation of the package store if the holder receives the order for purchase during the hours permitted under AS 04.16.010 and the individual delivering the alcoholic beverage completes the delivery within a reasonable amount of time after leaving the package store. If the holder of a consumer delivery license does not hold a package store license, the holder of the package store license is not liable for an action of the holder of the consumer delivery license or an agent, employee, or independent contractor of the holder of the consumer delivery license relating to an alcoholic beverage delivered from the package store, including delivery to an individual under 21 years of age in violation of AS 04.16.051 or a drunken person in violation of AS 04.16.030. An individual may not deliver an alcoholic beverage under this section unless the individual is 21 years of age or older and holds a valid driver's license. The holder of a consumer delivery license or the agent, employee, or independent contractor of the holder may not deliver an alcoholic beverage under this section who is in an area where the sale of alcoholic beverages has been restricted under AS 04.11.491. The holder of a consumer delivery license commits the offense of failure to comply with the terms of a consumer delivery license if the person sells alcoholic beverages in violation of (a) in this statute or fails to comply with the requirements of (b), (c), (e), or (f) of this section. Failure to comply with the terms of a consumer delivery license is a violation. Sec. 5. AS 04.09.480(c) is amended to insert AS 04.09.230(h) on sub-section B within (1) as an additional accordance to subdivide alcoholic beverages in response to a purchase request from a person who is on the licensed premises or purchase order submitted. Sec. 6. AS 04.11.400(i) is amended to replace sub- section (11) with the following language: "consumer delivery license issued under AS 04.09.380." The former sub-section (11) is reformatted in section 6 to sub-section (12). Sec. 7. AS 04.21.020(a) is amended to replace AS 04.11.080 04.11.220 with AS 04.09.020 04.09.380 [AS 04.09.020 04.09.370]. Sec. 8. AS 09.65.315(b) is amended to replace AS 04.09.020-04.09.370 with AS 04.09.020 04.09.380 [AS 04.09.020 04.09.370]. Sec. 9. This Act takes effect on the effective date of sec. 13, ch. 8, SLA 2024. 4:36:19 PM REPRESENTATIVE FIELDS noted that he generally supported the concept. He questioned the chain of responsibility for service regarding onsite sales versus delivery to someone's home. He questioned who was responsible if alcohol were provided to someone under the age of 21 or inebriated. 4:37:03 PM MS. HACKENMILLER clarified that if a third party is delivering the alcohol from a package store license holder, then the delivery agent is liable. REPRESENTATIVE FIELDS asked whether the bill sponsor's staff had talked to Legislative Legal Services about the definition of the term "independent contractor." He expressed concern that the application-based employers are trying to avoid workers' compensation (workers' comp) and wanted clarification regarding labor law. 4:38:13 PM CHAIR SUMNER replied that his office had not reached out to Legislative Legal Services or the Department of Law but would. REPRESENTATIVE FIELDS said it was his understanding that under current law some transportation network companies were exempted, but others were not exempted from workers' comp responsibilities. He questioned whether this should be available to breweries or package stores. 4:39:07 PM CHAIR SUMNER explained that Representative Fields could make an amendment at a future date. REPRESENTATIVE CARRICK requested clarification regarding whether "package store" includes stores such as Fred Meyers with alcohol sections as well as a Brown Jug-type of establishment. MS. HACKENMILLER replied in the affirmative. REPRESENTATIVE CARRICK brought up the question of whether a person who is younger than 21 could pick up and deliver alcohol. 4:40:30 PM CHAIR SUMNER replied that it still would be illegal and compared it to a purchase at a package store. MS. HACKENMILLER said the committee would have some industry experts testify to explain how other states approach the issue of sales to under-age individuals. REPRESENTATIVE CARRICK asked whether a person driving from point A to point B while transporting alcohol has to be 21 years old. 4:42:19 PM CHAIR SUMNER drew attention to Section 4, lines 9-12 of HB 192. 4:42:45 PM REPRESENTATIVE SADDLER asked whether, under HB 192, there would be a limit to the number of delivery licenses. Referring to Section 4, he questioned how the delivery license holder would confirm the identity of the purchaser. MS. HACKENMILLER replied that the details of how that is done will be explained by the industry testimony at the next meeting. 4:44:16 PM CHAIR SUMNER corrected his earlier statement and referred the committee to Section 4, lines 29-30. 4:44:50 PM REPRESENTATIVE PRAX asked whether there was information regarding what solutions other states have to prevent what would essentially be bootlegging. 4:45:29 PM CHAIR SUMNER announced that HB 192 was held over.