Legislature(2019 - 2020)SENATE FINANCE 532

03/08/2019 09:00 AM Senate FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 4 NAMING SCOTT JOHNSON MEMORIAL BRIDGE TELECONFERENCED
Heard & Held
+ SB 16 ALCOHOL LIC:FAIRS,THEATRES,CONCERTS;BONDS TELECONFERENCED
Heard & Held
+ SB 41 NUMBER OF SUPERIOR COURT JUDGES TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SB 25 EXTEND BOARD OF DENTAL EXAMINERS TELECONFERENCED
Moved SB 25 Out of Committee
+= SB 29 EXTEND BOARD OF MARINE PILOTS TELECONFERENCED
Moved SB 29 Out of Committee
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."                                                                                                                  
                                                                                                                                
9:46:42 AM                                                                                                                    
                                                                                                                                
SENATOR PETER MICCICHE, SPONSOR, introduced himself.                                                                            
                                                                                                                                
EDRA  MORLEDGE, STAFF,  SENATOR  PETER MICCICHE,  introduced                                                                    
herself.                                                                                                                        
                                                                                                                                
Senator Micciche explained the bill.                                                                                            
                                                                                                                                
9:50:46 AM                                                                                                                    
                                                                                                                                
Senator  Wielechowski wondered  whether bowling  alleys were                                                                    
considered in the legislation.                                                                                                  
                                                                                                                                
Senator Micciche  replied that  the bowling alley  issue was                                                                    
not currently  in the bill, but  could be added at  the will                                                                    
of the committee.                                                                                                               
                                                                                                                                
Senator Shower  noted several  communities that  had regular                                                                    
events,  and wondered  whether the  smaller  towns would  be                                                                    
affected.                                                                                                                       
                                                                                                                                
Senator Micciche replied  that the bill would  allow for the                                                                    
license at those events.                                                                                                        
                                                                                                                                
Senator  Wilson  wondered who  would  qualify  for the  fair                                                                    
license in the one borough.                                                                                                     
                                                                                                                                
Senator Micciche deferred to Ms.  Morledge, and felt that it                                                                    
could  be  adjusted. He  expressed  concern  about the  bill                                                                    
becoming a "Christmas tree"  for potential untraditional new                                                                    
uses.                                                                                                                           
                                                                                                                                
Ms. Morledge explained  that the bill provided  for one fair                                                                    
license per borough.                                                                                                            
                                                                                                                                
Senator  Wilson noted  that there  were a  myriad of  issues                                                                    
with  the  Board  and  the  audit  recommendations  and  the                                                                    
reinterpretations  of  laws.  He remarked  that  the  Alaska                                                                    
State Fair  had been in  operation for almost  twenty years.                                                                    
He  was  afraid  that  the   other  vendors  that  had  been                                                                    
operating  in good  faith,  with no  issues  with local  law                                                                    
enforcement, and the  efficacy issues that the  bill may not                                                                    
cover.                                                                                                                          
                                                                                                                                
Co-Chair von  Imhof stated  there were  representatives from                                                                    
the Board available for questions.                                                                                              
                                                                                                                                
Senator  Micciche felt  that the  alcohol  statutes "were  a                                                                    
mess."                                                                                                                          
                                                                                                                                
Co-Chair von Imhof asked for a Sectional Analysis.                                                                              
                                                                                                                                
9:58:15 AM                                                                                                                    
                                                                                                                                
Ms.  Morledge  discussed  the Sectional  Analysis  (copy  on                                                                    
file):                                                                                                                          
                                                                                                                                
     Section 1: Amends AS 04.11.080    Types of Licenses and                                                                    
     Permits    to  add 'performing  arts theater  license,'                                                                    
     'fair   license,'  and   'concert   permit.'  (Page   1                                                                    
     beginning on Line 5)                                                                                                       
                                                                                                                                
     Section   2:  Adds   a  new   section  (AS   04.11.205)                                                                    
     Performing arts  theater license. This  section defines                                                                    
     this  type  of  license,   the  biennial  fee  for  the                                                                    
     license,  and   the  circumstances  for   issuance  and                                                                    
     compliance. (Page 2, beginning on Line 19)                                                                                 
                                                                                                                                
     Section  3:  Amends AS  04.11.210(a)  to  use the  word                                                                    
     "activities"  rather  than  "events" as  being  allowed                                                                    
     under a  recreational site license. (Page  3, lines 19-                                                                    
     22)                                                                                                                        
                                                                                                                                
     Section  4: Amends  AS  04.11.210(c)  to list  sporting                                                                    
     activities such  as skiing and  snowboarding activities                                                                    
     are allowable under a  recreational site license. (Page                                                                    
     3, lines 23-27)                                                                                                            
                                                                                                                                
     Section  5:  Adds a  new  section  (AS 04.11.215)  Fair                                                                    
     license.  This section  defines this  type of  license,                                                                    
     the   biennial   fee   for   the   license,   and   the                                                                    
     circumstances  for issuance  and  compliance. (Page  3,                                                                    
     beginning on line 28)                                                                                                      
                                                                                                                                
     Section  6:  Adds  a new  section  (AS  04.11.235(a-c))                                                                    
     Concert  permit. This  section allows  the holder  of a                                                                    
     recreational site  license to obtain a  concert permit,                                                                    
     disallows  transfer or  renewal,  and sets  the fee  at                                                                    
     $50. (Page 4, lines 9-17)                                                                                                  
                                                                                                                                
     Section   7:  Amends   AS  04.11.330(d)   to  allow   a                                                                    
     performing     arts     theater    license     renewal,                                                                    
     notwithstanding other requirements,  if the license was                                                                    
     exercised  at least  once during  each of  the previous                                                                    
     two calendar years. (Page 4, lines 18-22)                                                                                  
                                                                                                                                
     Section 8:  Amends AS 04.11.400(a) to  specify that the                                                                    
     board may  prohibit a new  license or relocation  of an                                                                    
     existing license in  accordance with population limits.                                                                    
     (Page 4, beginning on line 23)                                                                                             
                                                                                                                                
     Section 9: Establishes under  AS 04.11.400(o) that only                                                                    
     one fair  license may be  issued per borough.  (Page 5,                                                                    
     lines 24-26)                                                                                                               
                                                                                                                                
     Section 10:  Adds the new  licenses/permit to  the list                                                                    
     of  those  required  post   notice  on  the  designated                                                                    
     premise. (Page 5, beginning on line 27)                                                                                    
                                                                                                                                
     Sections 11-13: Amends  AS 43.60.040 Administration and                                                                    
     Enforcement  of  Tax,  to   add  subsection  (i).  This                                                                    
     section  provides   an  incentive  for   filing  timely                                                                    
     monthly tax returns  and paying taxes on  time over the                                                                    
     most recent  three years. Specifically, it  removes the                                                                    
     $25,000   surety   bond   requirement  if   all   other                                                                    
     requirements of compliance are  met. (Page 6, beginning                                                                    
     on line 21, through page 7, line 21)                                                                                       
                                                                                                                                
     Section 14: Immediate effective date (Page 7, line 22)                                                                     
                                                                                                                                
10:03:02 AM                                                                                                                   
                                                                                                                                
JEROME HERTEL, GENERAL MANAGER, ALASKA STATE FAIR, PALMER                                                                       
(via teleconference), spoke in support of the bill.                                                                             
                                                                                                                                
10:06:39 AM                                                                                                                   
                                                                                                                                
BOB  KLEIN, ALASKA  BEVERAGE CONTROL  BOARD, ANCHORAGE  (via                                                                    
teleconference),   stated   that   he  was   available   for                                                                    
questions.  He remarked  that Senator  Wilson described  the                                                                    
activities of the Alaska Beverage Control (ABC) Board.                                                                          
                                                                                                                                
10:09:56 AM                                                                                                                   
                                                                                                                                
Co-Chair von Imhof OPENED public testimony.                                                                                     
                                                                                                                                
10:10:08 AM                                                                                                                   
                                                                                                                                
CODIE    COSTELLO,     VICE-PRESIDENT,    DEVELOPMENT    AND                                                                    
COMMUNICATIONS, ALASKA  CENTER FOR THE PERFORMING  ARTS (via                                                                    
teleconference), spoke in support of the bill.                                                                                  
                                                                                                                                
10:11:20 AM                                                                                                                   
                                                                                                                                
PAUL SHADURA II, SELF, KENAI  (via teleconference), spoke in                                                                    
support of the current version of the bill.                                                                                     
                                                                                                                                
10:12:52 AM                                                                                                                   
                                                                                                                                
MARNA SANFORD,  SELF, FAIRBANKS (via  teleconference), spoke                                                                    
against the current  version of the bill. She  felt that the                                                                    
bill did  not provide  clarity for the  small events  in the                                                                    
state.  She stated  that  she had  worked  with the  Chicken                                                                    
Stock Music Festival.                                                                                                           
                                                                                                                                
10:15:26 AM                                                                                                                   
                                                                                                                                
JOSEA BUSBY,  SELF, CHICKEN (via  teleconference), testified                                                                    
against the  current version  of the  bill. She  stated that                                                                    
there should be amendments.                                                                                                     
                                                                                                                                
Senator Micciche stated  that he was interested  in the lack                                                                    
of success in  using a caterers permit. He wanted  to find a                                                                    
solution.                                                                                                                       
                                                                                                                                
10:18:28 AM                                                                                                                   
                                                                                                                                
KEN  PELTIER, SELF,  PALMER (via  teleconference), spoke  in                                                                    
support of the bill.                                                                                                            
                                                                                                                                
Senator Bishop  thanked Mr. Peltier  for her  volunteer work                                                                    
with music for cancer survivors and veterans.                                                                                   
                                                                                                                                
Mr.  Peltier replied  that  he had  recently  been asked  to                                                                    
perform for the troops in Qatar.                                                                                                
                                                                                                                                
Co-Chair von Imhof CLOSED public testimony.                                                                                     
                                                                                                                                
Senator Wilson noted that the  2014 stated that there were a                                                                    
number of licensees  that had issues that may  not have been                                                                    
covered in  the recreational  licenses. He  wondered whether                                                                    
the  board  had sent  notices  to  the entities  that  their                                                                    
licenses may not continue.                                                                                                      
                                                                                                                                
10:21:43 AM                                                                                                                   
                                                                                                                                
ERIKA  MCCONNELL,  DIRECTOR,  ALASKA AND  MARIJUANA  CONTROL                                                                    
OFFICE  (via teleconference),  replied  that  she could  not                                                                    
speak to  that, but  she did not  believe that  notices were                                                                    
sent at that time.                                                                                                              
                                                                                                                                
                                                                                                                                
Senator Wilson  assumed that  the only  way that  a licensee                                                                    
could  know that  they would  not be  noticed was  when they                                                                    
applied  without  knowing  that   their  licenses  would  be                                                                    
denied.  He  wondered whether  there  could  be a  temporary                                                                    
renewal.                                                                                                                        
                                                                                                                                
Ms. McConnell replied that when  the first audit reached the                                                                    
conclusion in 2014, she believed  that notices were not sent                                                                    
at that  time. The board began  to look more closely  at the                                                                    
licenses  during  the  renewal  period  for  2017  and  2018                                                                    
licenses.  At  that  time,   the  Board  identified  several                                                                    
recreational  site licenses  that they  determined were  not                                                                    
compliant with  the statute. Therefore,  the Board  told the                                                                    
licensee that they  would be renewed for one  final time, so                                                                    
there  could be  two  years to  examine what  to  do in  the                                                                    
future.                                                                                                                         
                                                                                                                                
Senator Wilson  wondered whether  the Alaska State  Fair had                                                                    
received that notice.                                                                                                           
                                                                                                                                
Ms. McConnell replied that she did not believe so.                                                                              
                                                                                                                                
Senator  Micciche stated  that the  bill was  designed as  a                                                                    
"catch all" for  the specific license types.  He queried the                                                                    
Chicken Stock situation.                                                                                                        
                                                                                                                                
Ms. McConnell  replied that  it might  be better  to examine                                                                    
further research on the issue.                                                                                                  
                                                                                                                                
Co-Chair von Imhof announced that amendments were due by                                                                        
5pm on Monday, March 11. She discussed the agenda for the                                                                       
next scheduled meeting.                                                                                                         
                                                                                                                                
SB 16 was HEARD and HELD in committee for further                                                                               
consideration.                                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
SB 4 Location of Bridge.pdf SFIN 3/8/2019 9:00:00 AM
SB 4
SB 4 Images of Bridge.pdf SFIN 3/8/2019 9:00:00 AM
SB 4
SB 4 Bridge Blueprint.pdf SFIN 3/8/2019 9:00:00 AM
SB 4
SB 4 Memorium.pdf SFIN 3/8/2019 9:00:00 AM
SB 4
SB 4 Scott Johnson Obituary.pdf SFIN 3/8/2019 9:00:00 AM
SB 4
SB 4 Scott Johnson Photo.pdf SFIN 3/8/2019 9:00:00 AM
SB 4
SB 4 Sponsor Statement.pdf SFIN 3/8/2019 9:00:00 AM
SB 4
SB 16 DCCED AMCO Memo 12.17.18.pdf SFIN 3/8/2019 9:00:00 AM
SB 16
SB 16 ADN Article 12.17.18.pdf SFIN 3/8/2019 9:00:00 AM
SB 16
SB 16 ADN Article 2.5.19.pdf SFIN 3/8/2019 9:00:00 AM
SB 16
SB 16 Explanation of Changes v A to v U.pdf SFIN 3/8/2019 9:00:00 AM
SB 16
SB 16 Frontiersman Article 1.31.19.pdf SFIN 3/8/2019 9:00:00 AM
SB 16
SB 16 KINY Article re Eaglecrest 10.16.18.pdf SFIN 3/8/2019 9:00:00 AM
SB 16
SB 16 KTOO Article 10.16.18 - Ski Area.pdf SFIN 3/8/2019 9:00:00 AM
SB 16
SB 16 KTUU Article Arctic Valley 8.14.18.pdf SFIN 3/8/2019 9:00:00 AM
SB 16
SB 16 KTVA Article 2.4.19.pdf SFIN 3/8/2019 9:00:00 AM
SB 16
SB 16 Legislative Audit Sunset Review ABC Board 2017 - Excerpt.pdf SFIN 3/8/2019 9:00:00 AM
SB 16
SB 16 Letter of Support - Eaglecrest.pdf SFIN 3/8/2019 9:00:00 AM
SB 16
SB 16 Letter of Support - Herrington.pdf SFIN 3/8/2019 9:00:00 AM
SB 16
SB 16 Sectional Analysis v U.pdf SFIN 3/8/2019 9:00:00 AM
SB 16
SB 16 Ski Area The Alaska Star.pdf SFIN 3/8/2019 9:00:00 AM
SB 16
SB 16 Sponsor Statement Version U.pdf SFIN 3/8/2019 9:00:00 AM
SB 16
SB 16 Star Article Arctic Valley 8.15.18.pdf SFIN 3/8/2019 9:00:00 AM
SB 16
SB041 Sponsor Statement.pdf HRLS 4/2/2019 11:30:00 AM
SFIN 3/8/2019 9:00:00 AM
SJUD 2/11/2019 1:30:00 PM
SB 41
SB041 Sponsor Statement.pdf SFIN 3/8/2019 9:00:00 AM
SB 41
SB 4 Support - Tok Resident Petition.pdf SFIN 3/8/2019 9:00:00 AM
SB 4
SB 16 ShaduraII Testimony.pdf SFIN 3/8/2019 9:00:00 AM
SB 16