Legislature(2017 - 2018)BELTZ 105 (TSBldg)
04/14/2018 09:00 AM Senate JUDICIARY
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| Audio | Topic |
|---|---|
| Start | |
| HB20 | |
| SB76 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 20 | TELECONFERENCED | |
| += | SB 76 | TELECONFERENCED | |
| + | TELECONFERENCED |
SB 76-ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG
9:10:18 AM
CHAIR COGHILL announced the consideration of SB 76 and noted the
proposed committee substitute (CS).
9:10:49 AM
SENATOR COSTELLO moved to adopt the work draft committee
substitute (CS) for SB 76, version 30-LS0015\Y, as the working
document.
CHAIR COGHILL objected to hear an explanation of the changes.
9:12:14 AM
SENATOR WIELECHOWSKI joined the committee.
JORDAN SHILLING, Staff, Senator John Coghill, Alaska State
Legislature, Juneau, Alaska, reviewed the following changes
between version M and version Y of SB 76:
1. Page 13, line 14: Lower $2,500 biennial club
license fee to $1,500.
2. Page 18, line 24: Amends the sporting event
license by inserting "at multiple noncontiguous
locations" after "wine".
3. Page 20, line 22: Amends the destination resort
license by inserting "at multiple noncontiguous
locations" after "beverages".
9:13:43 AM
At ease
9:19:17 AM
CHAIR COGHILL reconvened the meeting and asked Mr. Shilling to
supplement the explanation of "multiple noncontiguous
locations."
Mr. Shilling pointed to the Chena Hot Springs Resort in
Fairbanks as an example of multiple noncontiguous locations. It
has multiple serving locations on a single site.
CHAIR COGHILL asked Ms. Brawley if she had anything to add.
9:20:56 AM
ANNA BRAWLEY, Project Coordinator, Title IV Review Project and
Senior Associate, Agnew Beck Consulting, Anchorage, Alaska, said
the proposed language allows both the destination resort and the
sporting event license types to designate multiple areas on the
same property as a licensed premises. She cited the example of
two beer gardens on the same property.
MR. SHILLING continued to discuss the changes between version M
and version Y of SB 76.
4. Page 27, line 27: Insert "with a zip code"
following "address".
5. Page 28, lines 21-22: Insert "zip codes that are
located within" following "public inspection
of". [He noted that this allows wine shippers
from out-of-state to understand to which
locations they can and cannot ship. For example,
they should not be shipping to a local option
area.]
6. Page 48, lines 26-31 through page 50, line 3: Creates
new Article 7. Common Carrier Approval in section 9
using subsections AS 04.16.125(a)-(f) and (i)-(l)
from section 105. This makes an important distinction
between administrative violations against a common
carrier licensee and the crime of unauthorized
transportation of alcoholic beverages by a common
carrier into a local option area by a person.
MR. SHILLING deferred further explanation to Ms. Brawley.
9:23:15 AM
MS. BRAWLEY explained that the original bill put the new concept
of shipping alcohol by an approved common carrier from an out-
of-state source such as a winery to an Alaskan customer in with
the existing law that restricts the shipment of alcohol by
common carrier into a local option area. Those are completely
separate issues and the proposed language separates the new
concept from the original section.
SENATOR WIELECHOWSKI read the language on page 48, lines 27-29,
regarding common carrier approval and the definition of "common
carrier" on page 50, lines 1-2. He asked if this would create a
legal liability for someone driving an Uber, Lyft, or taxi it
they picked up someone carrying a six pack of beer.
MS. BRAWLEY opined that the sections relating to approved common
carrier are contemplating shippers like FEDEX and UPS that are
sending alcohol from a business to a customer. She said the
statute relating to local option in AS 04.16.125 is current law
and she didn't believe that the liability is on the carrier, but
she would defer to the Department of Law.
9:25:51 AM
GUSTAF OLSON, District Attorney, Criminal Division, Kodiak
District Attorney Office, Department of Law, Kodiak, Alaska,
advised that between 2011 and 2013 he was the statewide
prosecutor for Title IV violations and he did prosecute common
carriers. His understanding of the proposed modification is that
it clarifies the liability and the expectations of the common
carrier that is providing the service as opposed to the
individual who is utilizing that service to transport alcohol.
In the two years that he was the statewide prosecutor, he never
charged a common carrier with a common carrier violation. Each
time he brought a charge under this title, it was against the
person who was trying to subvert the will of the people in the
local option community by not properly marking the alcohol
container.
9:27:07 AM
SENATOR WIELECHOWSKI described the proposed language as broad.
He posed a hypothetical of someone calling an Uber or Lyft from
a liquor store and climbing into the car with a six pack of
beer. He asked if that violates Sec. 04.09.750.
MR. OLSON said he had never seen that type of scenario in rural
Alaska. The crimes that are charged relating to common carrier
are generally in areas that do not allow the sale of alcohol,
but people are allowed to bring in alcohol that is properly
marked. The common carrier provisions are in Title IV because
alcohol can sometimes be delivered through a packing store
license.
CHAIR COGHILL asked if it would be a violation for an Uber or
Lyft driver in Anchorage or Fairbanks to pick up and transport a
bottle of wine or spirits without a passenger.
MR. OLSON said he didn't believe so based on his reading of the
bill and prior enforcement of Title IV.
9:29:10 AM
SENATOR WIELECHOWSKI commented that the language on page 48,
lines 27-29, doesn't seem to limit this to local option
communities. He added, "If you're saying that you're not going
to prosecute people for that scenario, I just wanted to have a
record of that."
MR. OLSON referenced AS 04.16.125(a) and offered his reading
that it applies to a person who is using a common carrier to
transport alcoholic beverages into an area that has restricted
the sale of alcoholic beverages per AS 04.11.491 regarding to
local options.
CHAIR COGHILL asked Ms. Brawley what she contemplated with the
new Article 7 regarding common carrier approval.
MS. BRAWLEY said the idea is to ensure that the people that are
transporting and delivering alcohol to customers are checking
IDs and making sure they are following safe alcohol handling
policy. The new section covers both non-local option areas and
local option areas and addresses a business such as a winery or
package store shipping alcohol to an individual. A business with
the winery direct shipment license would not be able to ship to
a local option community because they would not have access to
the written order database that the ABC Board uses to track
monthly order limits. An Alaska package store could ship to a
local option area because they have access to the database.
9:31:48 AM
MR. SHILLING continued to discuss the changes between version M
and version Y of SB 76.
7.Page 70, line 1: Lower the waiting period between board
petitions from 10 years to 5 years.
CHAIR COGHILL asked Ms. Brawley to discuss the history of this
issue and why the reductions gives some comfort to communities.
MS. BRAWLEY explained that this relates to a city petitioning
the ABC Board to get additional restaurant licenses outside the
population limits for that city. The bill proposes that a city
could revise their denied petition and essentially submit it the
next day. If the petition is approved, the board can authorize
additional licenses for the municipality after five years.
Previously it was after 10 years.
CHAIR COGHILL offered his understanding that this became an
issue for cities that saw 10 years as too long to wait when they
were growing so rapidly.
MS. BRAWLEY said that's correct.
9:33:40 AM
SENATOR SHOWER said he'd check with the four cities in his
district that would like the timeframe to be three years as
opposed to five years. Those cities also requested a change in
the appeal process to potentially include the commissioner. His
understanding was that the sponsor worked to address those
concerns.
9:34:20 AM
RACHEL HANKE, Staff, Senator Peter Micciche, Alaska State
Legislature, Juneau, Alaska, said her understanding was that an
appeal process that includes the commissioner is not allowed for
the ABC Board, but there is an existing appeal process to
[superior] court. She deferred further explanation to Erika
McConnell.
ERIKA MCCONNELL, Director, Alcohol and Marijuana Control Office,
Anchorage, Alaska, explained that the ABC Board is an
independent quasi-judicial and regulatory board whose decisions
can be appealed to the Office of Administrative Hearings where
an administrative law judge holds a hearing. The judge offers a
recommended decision and the ABC Board makes a final decision.
An unsatisfied appellant may appeal to superior court.
9:35:56 AM
MR. SHILLING continued to discuss the changes between version M
and version Y of SB 76.
8. Page 86: Deletes previous sections 92 and 93
which amended the charges for furnishing or
delivering to a minor. Statute will remain
unchanged.
MR. SHILLING explained that the deleted sections relate to
furnishing or delivering alcohol to a minor. The conduct would
remain a class A misdemeanor or a class C felony.
CHAIR COGHILL said this change was at his request. He asked Ms.
Henke if the sponsor had an issue with it.
MS. HENKE said no.
CHAIR COGHILL asked Mr. Olson to discuss the felony penalty.
9:37:06 AM
MR. OLSON said he was a career prosecutor who has been involved
in enforcement of the crimes of furnishing alcohol to underage
individuals and he believed that the criminal penalties were
appropriate.
MR. SHILLING continued to discuss the changes between version M
and version Y of SB 76.
9. Page 87, lines 12-18: Renumbers previous section
95 as section 93 and renumbers the following
accordingly. Removes violation penalty for
renting a room for the purpose of providing
alcoholic beverages to a person under 21 years of
age and makes the crime a class A misdemeanor.
10. Page 88, lines 19, 22: Amends sections by
specifying that a person 21 years of age or older
is subject to the $100 fine for consumption at a
school event.
MR. SHILLING explained that the bill previously was silent on
age, which was problematic because it conflicted with the
existing crime of consuming alcohol as a minor. This clarifies
that this fine only applies to individuals over 21 years of age.
CHAIR COGHILL asked if the Catholic school fundraiser in
Fairbanks would be considered a school event. The event is held
at the school and alcohol is served.
MS. BRAWLEY suggested Erika McConnell answer the question
because the event had been held for several years and would have
received a permit.
9:40:17 AM
MS. MCCONNELL said AMCO issues permits for events that happen at
schools, but she was unsure if the definition of school event
would be an event that happens at the school or an event such as
a fundraiser that is related to a school event. She said she
would look into that.
CHAIR COGHILL said the question should be answered before the
bill leaves this body. He offered his understanding that this
was a new section in the law.
MR. SHILLING offered his understanding that this was existing
law. The bill establishes a fine that previously was a class A
misdemeanor.
CHAIR COGHILL asked Mr. Olson if he had anything to add.
9:41:47 AM
MR. OLSON deferred the question saying the scenario needed more
scrutiny.
CHAIR COGHILL said he would follow the question and would like
the sponsor to do the same.
MR. SHILLING discussed the final change between version M and
version Y of SB 76.
11. Page 89, lines 26-31 through page 90, lines 1-21:
Adds reference to new approved common carriers
section [see change 6]. Simplifies existing AS
04.16.125 and relocates existing class A
misdemeanor into new subsections (d) and (e) for
clarity.
He deferred the explanation to Anna Brawley.
9:42:53 AM
MS. BRAWLEY said this was a modification of existing law
relating to the transport of alcohol into a local option area.
The language in the original bill was appropriate for other
common carrier regulations regarding shipping to customers but
this would cover multiple scenarios in which an individual may
accompany the alcohol rather than shipping it through a
commercial carrier.
9:43:52 AM
CHAIR COGHILL removed his objection and version Y was adopted.
CHAIR COGHILL opened public testimony on SB 76.
9:44:55 AM
SASSAN MOSSANEN, representing the Brewers Guild of Alaska, and
founding partner of Denali Brewing Company, Talkeetna, Alaska,
stated support for SB 76 as currently drafted. He expressed
gratitude for the steering committee and the sponsor's work
throughout the long process.
9:45:51 AM
MICHAEL CERVANTES, owner, Banks Ale House, Fairbanks, Alaska,
stated support for SB 76. He opined that the current version
provided an even playing field for all the licensees and would
help clarify contradictory information. He pointed out that the
rewrite allowed cross utilization of licenses, would help the
industry going forward, and would bring the title up to date.
9:47:52 AM
ROBIN MINARD, Director of Public Affairs, Matsu Health
Foundation, Wasilla, Alaska, stated support for SB 76. She
advised that in their 2013 community health needs assessment
MatSu residents ranked alcohol and substance abuse as the number
one health issue in the MatSu. Police captains also confirmed
that alcohol was the number one substance abuse problem. When
the MatSu regional emergency department visits were analyzed
from 2013 to 2016, they found that alcohol disorders were the
number one reason for behavioral health visits. She opined that
the systematic redraft of Title IV proposed in SB 76 would help
the ABC Board carry out its mission and would benefit
organizations and individuals whose work, community, or business
is affected by alcohol. She encouraged the committee to move the
bill forward for passage this year.
9:49:37 AM
MATTHEW JONES, Moose's Tooth, Bear Tooth, and Broken Tooth,
Anchorage, Alaska, stated support for SB 76 and described the
long process as a once in a lifetime opportunity to rewrite
Title IV in a sensible way. He opined that it would level the
playing field between competitors and provide AMCO a sensible
road map for enforcing the law.
9:51:09 AM
DALE FOX, President, Alaska CHARR, Anchorage, Alaska, testified
in support of SB 76. He posited that a well-regulated alcohol
industry was good for public safety, for public health, and the
industry. He commented that what was interesting about this long
process was the coming together of people. The Alaska CHARR
Board, which is comprised of every segment of the industry,
unanimously supports SB 76. They encourage passage of the bill.
9:52:28 AM
TIFFANY HALL, Executive Director, Recover Alaska, said her board
was very different than the CHARR Board but it too was in full
support of SB 76. Their primary funders include Providence,
Southcentral Foundation, MatSu Health Foundation, Rasmuson, the
Mental Health Trust Authority, DHSS, and many other tribal,
nonprofit, and governmental agencies across the state. The work
has been ongoing for six years and it took all of that time to
reach consensus between health, public safety, and the industry.
She said it was important to pass the bill this year. These are
the things on which there is consensus. She said Recover Alaska
was committed to continue working on areas where consensus was
not achieved.
CHAIR COGHILL asked Ms. Brawley to give members an idea of the
numbers of meetings it took to put this together.
MS. BRAWLEY said she understands that the project was initiated
by the ABC Board in 2012. The board hired Agnew Beck Consulting
initially to facilitate a meeting and it has shepherded the
project since then organizing meetings, taking notes, and
tracking the discussion and decisions. She estimated that
stakeholders spent 12,000 hours in meetings.
9:56:06 AM
CHAIR COGHILL closed public testimony on SB 76 an asked the will
of the committee.
SENATOR SHOWER said he was working on an amendment.
9:57:06 AM
At ease
9:57:52 AM
CHAIR COGHILL reconvened the meeting.
9:58:06 AM
SENATOR COSTELLO moved to report the CS for SSSB 76, version Y,
from committee with individual recommendations and attached
fiscal note(s).
9:58:18 AM
SENATOR SHOWER objected. He said he wanted to discuss the
question of public convenience with Ms. Brawley.
CHAIR COGHILL asked if he wanted to hold the bill until Monday
or follow it to the next committee.
SENATOR SHOWER said his preference was to hold it until Monday
but would defer to the committee.
9:59:03 AM
At ease
9:59:51 AM
CHAIR COGHILL reconvened the meeting.
10:00:00 AM
SENATOR SHOWER said his proposed amendment would maintain the
existing statute and communities would have the opportunity to
apply for additional licenses.
CHAIR COGHILL said he would commit to work on that as the bill
moves forward, but it may not need to be added to the bill.
SENATOR SHOWER said he preferred not to slow the bill.
CHAIR COGHILL asked if there was objection to moving SB 76 from
committee.
10:00:30 AM
SENATOR WIELECHOWSKI said a few issues came up during the last
hearing that the committee asked the Department of Law to
clarify. Those have not been resolved but if the next committee
of referral could address them he would be comfortable moving
the bill. He listed the following questions that are based on
version M:
Section 79, subsection (b), on page 81, lines 28-30.
The question was what the legal standard was.
Section 81, subsection (e), on page 82, lines 20-25,
The question was whether the penalty was limited to
$250 or if it was strict and vicarious liability plus
the penalty of $250.
Section 100, subsections (b) and (c), on page 87. The
question was the definition of school event.
Section 105, on page 89. The question was about the
liability for a common carrier transporting or
delivering alcoholic beverages.
Section 106, subsection (c), on page 91, lines 2-3.
The question was about the definition of unauthorized
storage.
SENATOR WIELECHOWSKI said his concerns would be resolved if he
received answers to the forgoing questions in the next several
days and there was some discussion on the record in the Finance
Committee.
10:03:04 AM
SENATOR SHOWER said he would also like clarification about the
appeal process for a petition for additional restaurant or
eating place licenses for certain local governing bodies. The
sponsor said there would be the opportunity for a second appeal.
He wanted to verify that that was the case and who would hear
the appeal.
CHAIR COGHILL advised that Erika McConnell said the appeal was
to the ABC Board and then an administrative law judge.
SENATOR SHOWER said he wanted clarification because he'd
received two different answers.
CHAIR COGHILL said he would depend on the sponsor to follow the
bill with the answers.
10:04:24 AM
CHAIR COGHILL found no objection and CSSSSB 76(JUD) moved from
the Senate Judiciary Standing Committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 76 - Explanation of Changes Ver. M to Ver. Y.pdf |
SJUD 4/14/2018 9:00:00 AM |
SB 76 |
| CS to SB 76 - Version Y.pdf |
SJUD 4/14/2018 9:00:00 AM |
SB 76 |