04/01/2019 09:00 AM Senate FINANCE

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."                                                                                                                  
                                                                                                                                
9:04:34 AM                                                                                                                    
                                                                                                                                
Co-Chair von Imhof relayed that  the committee had heard the                                                                    
bill on March  8, 2019, public testimony had  been taken and                                                                    
the fiscal note had been reviewed.                                                                                              
                                                                                                                                
Senator Wilson MOVED to  ADOPT proposed committee substitute                                                                    
for SB 16, Work Draft 31-LS0283\G (Bruce, 3/28/19).                                                                             
                                                                                                                                
Co-Chair von Imhof OBJECTED for discussion.                                                                                     
                                                                                                                                
9:05:28 AM                                                                                                                    
                                                                                                                                
JULI LUCKY, STAFF, SENATOR NATASHA  VON IMHOF, discussed the                                                                    
proposed committee substitute for  SB 16. She explained that                                                                    
the  bill  had been  crafted  in  the  attempt to  remedy  a                                                                    
situation  where   licenses  had  been  given   outside  the                                                                    
statutory authority, an  audit had found that  the board had                                                                    
given  some   licenses  that  had  not   met  the  statutory                                                                    
definition.  Statutory definitions  had  since been  created                                                                    
for each  of the licenses  in question, but there  were some                                                                    
licenses that were hard to categorize.                                                                                          
                                                                                                                                
Ms. Lucky read from an Explanation of Changes document                                                                          
(copy on file):                                                                                                                 
                                                                                                                                
          Adds a  new "musical  festival permit"  that would                                                                    
          allow a restaurant or  eating place license holder                                                                    
          to  serve  beer  and  wine   at  an  annual  music                                                                    
          festival. This is limited  to one festival lasting                                                                    
          10  days  or  less  per  year.  [Section  9;  also                                                                    
         conforming changes in sections 1, 10, 12]                                                                              
                                                                                                                                
          Adds  a grandfather  clause to  allow recreational                                                                    
          site  licenses to  be  renewed  or transferred  if                                                                    
          they  were  valid on  December  31,  2018 and  are                                                                    
          operating according to the  terms of their license                                                                    
          but were  subsequently determined by the  board to                                                                    
          not    meet    the   statutory    definition    of                                                                    
          "recreational   site   license."   A   retroactive                                                                    
          effective date and  transitional language has been                                                                    
          added to  ensure that  licenses can  be reinstated                                                                    
          and renewed  if they expired between  December 31,                                                                    
          2018 and  the bill's effective date.  [Sections 5,                                                                    
          16 and 18]                                                                                                            
                                                                                                                                
          Increases  the number  of  special events  permits                                                                    
          that  can be  granted  to  a nonprofit  fraternal,                                                                    
          civic, or  patriotic organization  to 12  per year                                                                    
          (current limit is five). [Section 8]                                                                                  
                                                                                                                                
          Reworded  the  language  in   section  15  at  the                                                                    
          request  of the  department.  The  changes do  not                                                                    
          affect the intent of the section.                                                                                     
                                                                                                                                
          Technical changes  to remove obsolete  language in                                                                    
          sections 8, 10, 17                                                                                                    
                                                                                                                                
     9:09:50 AM                                                                                                               
                                                                                                                                
     Ms. Lucky continued to address the Explanation of                                                                          
     Changes:                                                                                                                   
                                                                                                                                
          Removes   the   requirement   that   a   nonprofit                                                                    
          organization be  active for a  period of  at least                                                                    
          10 years  before filing an application  for a fair                                                                    
          license [v. U page 4, lines 3-4]                                                                                      
                                                                                                                                
          Removes the limit of one fair license per borough                                                                     
          [v. U sections 8 and 9]                                                                                               
                                                                                                                                
Ms. Lucky  explained that no  additional cost  was expected;                                                                    
however, as the new  permits came online, additional revenue                                                                    
could be  generated. She  had requested  updated forthcoming                                                                    
fiscal notes.                                                                                                                   
                                                                                                                                
9:10:56 AM                                                                                                                    
                                                                                                                                
Co-Chair von  Imhof WITHDREW her  objection. There  being NO                                                                    
further OBJECTION, it was so  ordered. The CS for SB 16(FIN)                                                                    
was ADOPTED.                                                                                                                    
                                                                                                                                
Senator  Micciche thanked  Co-Chair  von  Imhof's staff  for                                                                    
their  work.  He thought  the  intent  of  the bill  was  to                                                                    
support operating businesses.                                                                                                   
                                                                                                                                
9:12:13 AM                                                                                                                    
                                                                                                                                
Senator  Wilson   MOVED  to  report  CSSB   16(FIN)  out  of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSSB  16   was  REPORTED  out   of  committee  with   a  "no                                                                    
recommendation"  recommendation  and  with  one  forthcoming                                                                    
fiscal  note  from  Department of  Commerce,  Community  and                                                                    
Economic  Development;  and  one previously  published  zero                                                                    
fiscal note: FN 2(REV).                                                                                                         
                                                                                                                                
Co-Chair von Imhof discussed housekeeping.