Legislature(2023 - 2024)BARNES 124

01/22/2024 03:15 PM House LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 115 NATUROPATHS: LICENSING; PRACTICE TELECONFERENCED
Moved CSHB 115(L&C) Out of Committee
-- Public Testimony --
*+ HB 192 DELIVERY/PICK UP OF ALCOHOL; LICENSING TELECONFERENCED
Heard & Held
+= HB 143 ADVANCED RECYCLING AND FACILITIES TELECONFERENCED
Moved CSHB 143(RES) Out of Committee
-- Public Testimony <Time Limit May Be Set> --
+= HB 159 REGISTER INTERIOR DESIGNERS TELECONFERENCED
<Bill Hearing Rescheduled to 01/24/24>
-- Public Testimony <Time Limit May Be Set> --
+ Bills Previously Heard/Scheduled 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.                                                                               

Document Name Date/Time Subjects
Sponsor Statement HB192.pdf HL&C 1/22/2024 3:15:00 PM
HB 192
HB 192 Sectional Analysis Version A.pdf HL&C 1/22/2024 3:15:00 PM
HB 192
Letter from AELS April 2023.pdf HL&C 1/22/2024 3:15:00 PM
HB 159
J Cederberg testimony OPPOSING HB159.pdf HL&C 1/22/2024 3:15:00 PM
HB 159
C Fritz testimony opposing HB159 .pdf HL&C 1/22/2024 3:15:00 PM
HB 159
HB159 Letter in Support_ECI.pdf HL&C 1/22/2024 3:15:00 PM
HB 159
HB159 Sponsor Statement.pdf HL&C 1/22/2024 3:15:00 PM
HB 159
HB159 Sectional Analysis Version A.pdf HL&C 1/22/2024 3:15:00 PM
HB 159
AIA Alaska Position Paper on HB159 1.18.24.pdf HL&C 1/22/2024 3:15:00 PM
HB 159
Ryan Morse HB 159 Opposition Letter.pdf HL&C 1/22/2024 3:15:00 PM
HB 159
HB159 OPPOSE RSshimscheimer_.pdf HL&C 1/22/2024 3:15:00 PM
HB 159
HB159 Letter in Support_ECI.pdf HL&C 1/22/2024 3:15:00 PM
HB 159
Elke Gustafson Letter Opposition HB159.pdf HL&C 1/22/2024 3:15:00 PM
HB 159
Letter to H LC RE HB159.pdf HL&C 1/22/2024 3:15:00 PM
HB 159
HB 115 A.2.pdf HL&C 1/22/2024 3:15:00 PM
HB 115
HB 143 Slides Refresher Presentation 01.22.24.pptx HL&C 1/22/2024 3:15:00 PM
HB 143
Support Letter HB192 Walmart Statement.pdf HL&C 1/22/2024 3:15:00 PM
HB 192
Public Testimony HB159 - Lucas Smith.pdf HL&C 1/22/2024 3:15:00 PM
HB 159
Support Letter HB159 Michele Elfers.pdf HL&C 1/22/2024 3:15:00 PM
HB 159
OPPOSING HB 159 .pdf HL&C 1/22/2024 3:15:00 PM
HB 159
AIA Alaska_OPPOSING HB 159.pdf HL&C 1/22/2024 3:15:00 PM
HB 159
OPPOSING HB 159_RRearick_2024-01-24.pdf HL&C 1/22/2024 3:15:00 PM
HB 159
AIA Alaska_OPPOSING HB 159.pdf HL&C 1/22/2024 3:15:00 PM
HB 159
HB159 Summary of Changes Ver A to B.pdf HL&C 1/22/2024 3:15:00 PM
HB 159
HB159 Sectional Analysis Version B. .pdf HL&C 1/22/2024 3:15:00 PM
HB 159
AIA Alaska Position Paper on HB159 1.18.24.pdf HL&C 1/22/2024 3:15:00 PM
HB 159
HB192 Support Letter Instacart.pdf HL&C 1/22/2024 3:15:00 PM
HB 192
Opposition to HB159 - Livingston Slone Studio .pdf HL&C 1/22/2024 3:15:00 PM
HB 159
HB192 Letter of Support - DoorDash.pdf HL&C 1/22/2024 3:15:00 PM
HB 192
HB192 Version B.pdf HL&C 1/22/2024 3:15:00 PM
HB 192
HB192.B Explanation of Changes.pdf HL&C 1/22/2024 3:15:00 PM
HB 192