02/27/2004 09:06 AM Senate FIN

                                                                                                                                
     SENATE BILL NO. 194                                                                                                        
     "An Act authorizing  delivery of up to two bottles of distilled                                                            
     spirits to a cruise ship passenger or hotel guest."                                                                        
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Co-Chair  Wilken  stated  this  bill,  sponsored   by  Senator  Gary                                                            
Stevens, "allows a licensed,  packaged store in Alaska to deliver up                                                            
to two  bottles of  distilled spirits  in a gift  basket to  a hotel                                                            
guest or cruise ship passenger."                                                                                                
                                                                                                                                
DOUG  LETCH,  Staff  to  Senator  Gary  Stevens,  read  the  sponsor                                                            
statement into the record as follows.                                                                                           
                                                                                                                                
     SB 194,  "An Act authorizing  delivery of up to two  bottles of                                                            
     distilled  spirits to a cruise ship passenger  or hotel guest",                                                            
     is a straightforward  bill that brings distilled spirits on par                                                            
     with  wine or  champagne. Current  Alaska liquor  laws allow  a                                                            
     package store  to deliver not more than two bottles  of wine or                                                            
     champagne  in a  gift basket  with  a floral  arrangement  to a                                                            
     cruise  ship passenger  or a hotel guest.  When this  statutory                                                            
     change was  made, distilled spirits were inadvertently  omitted                                                            
     from the bill.                                                                                                             
                                                                                                                                
     SB 194  corrects this omission  by allowing a package  store to                                                            
     deliver  not more than  two bottles of  distilled spirits  in a                                                            
     gift  basket  with  a  floral  arrangement  to  a  cruise  ship                                                            
     passenger or a hotel guest.                                                                                                
                                                                                                                                
Senator   Hoffman  asked   about   the  initial   legislation   that                                                            
inadvertently overlooked the inclusion of distilled spirits.                                                                    
                                                                                                                                
DOUG   GRIFFIN,  Director,   Alcoholic   Beverage   Control   Board,                                                            
Department of  Revenue, testified via teleconference  from an offnet                                                            
site that the initial statute  was enacted in 1999. He recalled that                                                            
Senator  Torgerson  sponsored   this  bill  at  the  request  of  an                                                            
entrepreneur in Seward  who wanted to provide this service, although                                                            
no provision  to do so  existed. Mr. Griffin  noted only one  permit                                                            
has been issued  to date and was issued  to the Seward business.  He                                                            
emphasized  that the  Board was  conscious  of the  need to  control                                                            
access  to alcohol  and prevent  widespread  delivery  and to  avoid                                                            
situations such as taxicabs "shuttling" alcohol to parties, etc.                                                                
                                                                                                                                
Senator Hoffman noted the  sponsor expressed that this was provision                                                            
was  inadvertently  omitted and  asked if  the witness  shared  this                                                            
observation.                                                                                                                    
                                                                                                                                
Mr. Griffin was unsure,  noting the original legislation was drafted                                                            
at the  direction of Senator  Torgerson and  the issue of  distilled                                                            
spirits never arose.                                                                                                            
                                                                                                                                
Senator  Olson  wanted  assurance   that  this  was  an inadvertent                                                             
omission rather than purposeful.                                                                                                
                                                                                                                                
BERMAN OBALDIA, Still Spirits,  testified via teleconference from an                                                            
offnet location  that the  intent is to allow  passengers of  cruise                                                            
ships  to purchase  alcohol  in the  event  such products  were  not                                                            
readily available  at their home location  to share with  family and                                                            
friends.                                                                                                                        
                                                                                                                                
Co-Chair Green asked how beer is related to this statute.                                                                       
                                                                                                                                
Mr. Letch responded that  beer is not considered a distilled spirit.                                                            
                                                                                                                                
Co-Chair  Wilken  suggested that  this  could therefore  be  another                                                            
unintended omission.                                                                                                            
                                                                                                                                
Mr. Letch commented  that he had given  the matter consideration  as                                                            
well.                                                                                                                           
                                                                                                                                
Co-Chair Wilken  asked if bill should be held in Committee  to allow                                                            
for and amendment                                                                                                               
                                                                                                                                
Mr. Letch indicated this would be acceptable.                                                                                   
                                                                                                                                
Amendment #1:  This amendment inserts a new bill section  on page 1,                                                            
line 4 to read as follows.                                                                                                      
                                                                                                                                
     Section  1. This Act  shall be known  as the Gary Stevens  two-                                                            
     pack act of 2004."                                                                                                         
                                                                                                                                
Senator Olson moved for adoption                                                                                                
                                                                                                                                
Senator Olson WITHDREW the amendment.                                                                                           
                                                                                                                                
Co-Chair Wilken asked if Mr. Griffin would be willing to work with                                                              
the sponsor to address the inclusion of provisions for beer in the                                                              
legislation.                                                                                                                    
                                                                                                                                
Mr. Griffin affirmed he would.                                                                                                  
                                                                                                                                
Co-Chair Wilken ordered the bill HELD in Committee.