Legislature(2021 - 2022)BUTROVICH 205
04/12/2021 01:30 PM Senate JUDICIARY
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| Audio | Topic |
|---|---|
| Start | |
| SB82 | |
| SB9 | |
| SB15 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 15 | TELECONFERENCED | |
| += | SB 82 | TELECONFERENCED | |
| += | SB 9 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
SB 9-ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG
2:16:59 PM
CHAIR REINBOLD reconvened the meeting and announced the
consideration of SENATE BILL NO. 9, "An Act relating to
alcoholic beverages; relating to the regulation of
manufacturers, wholesalers, and retailers of alcoholic
beverages; relating to licenses, endorsements, and permits
involving alcoholic beverages; relating to common carrier
approval to transport or deliver alcoholic beverages; relating
to the Alcoholic Beverage Control Board; relating to offenses
involving alcoholic beverages; amending Rule 17(h), Alaska Rules
of Minor Offense Procedure; and providing for an effective
date."
[SB 9 was heard on 3/29/21 and 4/7/21. This is the third
hearing.]
2:17:15 PM
CHAIR REINBOLD opened public testimony on SB 9.
She asked the sponsor's staff to give a brief summary of SB 9
for the public's benefit.
2:17:51 PM
KONRAD JACKSON, Staff, Senator Peter Micciche, Alaska State
Legislature, Juneau, Alaska, on behalf of the sponsor, stated
that SB 9 is a comprehensive rewrite and reorganization of Title
4. It would streamline the process and make it easier for
licensees, the Alcoholic Beverage and Control Board (ABC Board)
staff and the general public to understand.
2:18:52 PM
NICK SPIROPOULOS, Borough Attorney, Mat-Su Borough, Wasilla,
Alaska, spoke in support of local control for alcoholic beverage
licenses. He said he previously sent a letter and resolution on
behalf of the Mat-Su Borough supporting SB 9. He stated that
municipalities hold a wide diversity of views with differing
local concerns, growth patterns, and attitudes on the
development of retailers, lodging and restaurants serving
alcohol. He emphasized that there is no mechanism under current
state law or in the proposed changes in SB 9 to allow
municipalities to determine whether additional alcohol licenses
would be appropriate. Only 20 percent of the Mat-Su Borough's
110,000 residents live within the cities. More local control
would allow for the increased economic development of businesses
where alcohol is part of the business model. The larger
populations in the Mat-Su Borough reside along the Knik Goose
Bay Road and at Meadow Lakes and Big Lake. In addition, people
live in the core area between Wasilla and Palmer.
2:20:05 PM
MR. SPIROPOULOS said the Mat-Su Borough also has smaller
population centers clustered in Butte, Sutton, Willow and
Talkeetna. The Mat-Su Borough believes it should decide whether
additional alcohol licensing might be appropriate in these
areas. He suggested that with planning and land use regulations,
local governments such as the Mat-Su Borough could coregulate
these activities with the state in a manner similar to how the
coregulation of marijuana activities currently happens. The
Alcohol & Marijuana Control Office has its rules, but local
government also establishes rules and regulations on the number
of allowable businesses.
MR. SPIROPOULOS offered his view that the state already has
mechanisms in state law to restrict licenses and address
specific bad actors. He said that the local government could
effectively regulate businesses serving alcohol even if the
number of licenses were to increase. He offered the Mat-Su
Borough's support for increased local control and for Senator
Hughes's Amendment 3 to SB 9 [labeled B.15, adopted on 4/7/21].
2:21:32 PM
JESSICA VIERA, Executive Director, Greater Wasilla Chamber of
Commerce, Wasilla, Alaska, expressed concerns about liquor
license population limits in SB 9. The Greater Wasilla Chamber
of Commerce has long listed local control on its legislative
priority list. She emphasized that these decisions should rest
with the home rule or first class municipalities. The state's
population limits on alcohol licenses act as a barrier to
business in the Mat-Su Borough. The Mat-Su Borough's population
sprawls over 25,000 square miles, but people gather in city
centers. Establishing license limits based on population within
the City of Wasilla when the area's population is five times
that doesn't make sense and restricts the free market.
MS. VIERA highlighted that some licensees purchase a liquor
license and sell it on the secondary market for hundreds of
thousands of dollars. Limiting the number of liquor licenses
increases the value of liquor licenses in the secondary market.
The Mat-Su Borough needs to continue to expand the amenities it
offers in breweries, pubs, restaurants, and Costco, or the
region will lose its appeal. The Chamber of Commerce wants the
area to thrive and not struggle under arbitrary restrictions
designed to manage the worst bad actors without considering
other license holders. She suggested members consider an
amendment to allow first-class and home rule municipalities to
control the number of licenses issued within their
jurisdictions.
2:25:16 PM
SARAH OATES, President; Chief Executive Officer, Alaska Cabaret,
Hotel, Restaurant, and Retailers Association (CHARR), Anchorage,
Alaska, spoke in support of SB 9, which represents a consensus
of the stakeholders. CHARR is the state's nonprofit association
for the hospitality industry, representing many of the nearly
2,000 statewide liquor license holders.
MS. OATES stated that the rewrite of Title 4 is in its 10th
year. She stated that in 2019, the public health and public
safety state and municipal regulatory bodies and all three
industry tiers reached consensus. She urged members to pass SB 9
to provide long-term regulatory certainty and desperately needed
financial stability for the industry. During COVID-19, liquor
license holders suffered devastating blows. The liquor license
industry represents $2 billion in annual revenue in Alaska and
over 32,000 employees. SB 9 will provide a better regulatory
system containing many changes that will benefit all sectors and
stakeholders. She urged members to pass the bill as soon as
possible.
2:26:54 PM
JEROME HERTEL, Chief Executive Officer, Alaska State Fair,
Palmer, Alaska, spoke in support of SB 9, as amended by
Amendment 3, labeled B.13 adopted by the committee on April 7,
2021. As many members know, in 2016, the Alaska State Fair's
recreational site license was in jeopardy because the fair did
not meet the established criteria. Senate Bill 16 grandfathered
the fair until new licenses were developed in the Title 4
rewrite. However, the Title 4 rewrite did not create a license
category that would allow the fair to operate as it has in the
past but would limit its operations to the annual state fair.
Currently, the fair hosts over 70 interim events each year.
Using other license categories for interim events, as was
suggested, would drastically limit the number of special events
and adversely affect the fair's revenue.
He spoke in support of Amendment 3 to SB 9 [labeled B.15,
adopted on 4/7/21]. Amendment 3 will allow the fair to operate
as it has for the past 39 years by serving beer and wine at non-
fair events. This will allow the fair to be self-sustaining,
without government subsidies, and give back to the community and
state. He highlighted that the Alaska State Fair's economic
impact is over $26 million in the state.
2:30:45 PM
CRYSTAL NYGARD, Deputy Administrator, City of Wasilla, Wasilla,
Alaska, spoke in support of SB 9. She stated that she has been a
strong supporter of Mat-Su's private sector for over 17 years.
The private sector seeks consistency and predictability. She has
talked to local businesses that want to serve wine or beer at
their establishments. She urged members to pass SB 9. She asked
members to support local control.
2:32:52 PM
TIFFANY HALL, Executive Director, Recover Alaska, Anchorage,
Alaska, spoke in support of SB 9 because of the health and
safety provisions included in the bill, which are largely
evidence-based practices to reduce underage drinking, increase
public safety by reducing alcohol-related violence and crime and
alcohol-related deaths. She stated that Recover Alaska works to
reduce excessive alcohol use and harm across the state. The
organization has worked with over 120 stakeholders on the Title
4 rewrite for over nine years. She said that alcohol-related
problems in Alaska cost the state $2.4 billion every year,
including costs for criminal justice, health care, lost
productivity, traffic collisions, and social services.
MS. HALL said SB 9 will make the statutes easier to understand
and easier for the Alcohol & Marijuana Control Office to
enforce. She characterized SB 9 as a huge win for Alaskans. She
expressed concern about Amendment [1] labeled B.13 and Amendment
[3], labeled B.15 because these amendments do not enforce
population limits, which are proven to reduce alcohol-related
crime, violence, deaths, and underage alcohol use. She stated
that overall, Recover Alaska is very supportive of SB 9.
2:35:08 PM
ROBIN MINARD, Chief Communications Officer, Mat-Su Health
Foundation, Wasilla, Alaska, spoke in support of SB 9 in its
original form. The foundation does not support Amendment 1 or
Amendment 3, previously adopted. She said the foundation shares
ownership with Mat-Su Regional Medical Center. It invests its
share of the profits into the community to achieve its mission
of improving Mat-Su residents' health and wellness. The
foundation has participated in the Title 4 rewrite.
MS. MINARD stated that Alaska's alcohol laws need to be updated.
The community ranks alcohol and substance abuse as the number
one health issue in the region. The police chief and medical
personnel identify alcohol issues as creating prevalent problems
in the community, including domestic violence and child
maltreatment. The foundation engages in many strategies to
reduce the harm of alcohol misuse, including preventing underage
drinking and promoting resilient youth in families and
communities. SB 9 results from a partnership with the industry
and stakeholders who have worked together to design a bill that
promotes responsible alcohol use by adults, reduces underage
consumption and supports better enforcement of Alaska's alcohol
laws. While the foundation's interest is primarily health, it
recognizes that SB 9 benefits local businesses and that a sound
economy is an important aspect of a healthy economy.
2:37:07 PM
LEE ELLIS, President, Brewers Guild of Alaska, Anchorage,
Alaska, spoke in support of SB 9 as introduced since it is a
critical step for the hospitality industry and the alcohol-
manufacturing industry. He said it will clean up regulatory and
statutory language, reduce burdens for distilleries and
breweries, and address public health concerns. He stated that
the Brewers Guild represents 39 breweries, two distilleries and
three wineries in Alaska. The guild has participated in the
Title 4 rewrite process since the beginning. Everyone has worked
very hard to achieve a bill that makes sense for everyone. He
urged members to move it forward.
2:38:44 PM
CHAIR REINBOLD closed public testimony on SB 9. She stated that
the committee will accept emails until 5 p.m. today.
[The committee treated it as though public testimony was
reopened.]
2:39:43 PM
GLENDA LEDFORD, Mayor, City of Wasilla, Wasilla, Alaska, spoke
in opposition to SB 9 as currently written because it does not
promote a fair business climate. At the same time, it attempts
to safeguard public health and safety in an already overburdened
system. In 2014, after the legalization of marijuana, the state
enacted a strong regulatory framework that tasked local
governments with implementing regulations. SB 9 could mirror the
marijuana model by creating the same regulatory framework in
home rule cities with police powers and zoning invoking local
control. However, the current version of SB 9 does not provide
for maximum local control. Statewide population restrictions
contained in AS 04.11.400 (a) ignore local conditions or
preferences, which translates into significantly limited
flexibility for innovative new business models and tangible
benefits for local governments.
MAYOR LEDFORD said the proposed AS 04.11.405 permits a few
limited first class and home rule cities and municipalities to
petition the board for additional licenses for restaurant
licenses only. Further, it contains other requirements a
municipality must meet to be granted a license.
2:41:52 PM
MAYOR LEDFORD said the City of Wasilla is the sixth largest city
in Alaska, representing the economic epicenter of the Mat-Su
Borough. Combined statistics from the Department of
Transportation & Public Facilities, Mat-Su Convention & Visitors
Bureau and the Alaska Visitor Statistics Program identified that
over 110,000 individuals and consumers frequent the city. Under
SB 9, the city would never offer the community additional fine
dining or shopping choices because the numerous companies and
restaurants seeking to do business in the Mat-Su Valley cannot
acquire the licensing. These businesses include Costco, which
could critically enhance food security in an emergency and
disaster situation. SB 9, as currently proposed, will adversely
affect all first-class and home rule cities in a much greater
economic capacity.
2:43:18 PM
MAYOR LEDFORD reported that Wasilla currently does not have any
bar, package, restaurant, and club licenses available. The city
currently licenses one brewery, three wineries, with one pending
winery license, three distilleries, and one recreational site
license. The City of Wasilla opposes SB 9, she said.
2:43:51 PM
CHAIR REINBOLD closed public testimony on SB 9.
2:44:30 PM
SENATOR MICCICHE, Alaska State Legislature, Juneau, Alaska,
sponsor of SB 9, said he appreciated all the work on the bill.
2:44:58 PM
SENATOR KIEHL said he hopes the bill will pass out of committee.
However, he questioned the validity of population limits. He
stated that he received a number of research studies from a
previous testifier, which he read. However, he did not find the
studies provided proof that per capita quotas limiting the
number of alcohol establishments protects public health and
safety. These studies make a compelling case for density limits,
which is the number of alcohol establishments in a physical
area. Density limits work from large urban centers to rural
South Africa. He acknowledged that basing licenses on density
limits is not part of Alaska's current alcohol law, which does
not significantly change the bill. One amendment the committee
passed provides a valuable locally-initiated release valve. He
offered his view that the committee improves the public policy
in SB 9.
CHAIR REINBOLD asked if he was referring to Amendment [3] B.15.
SENATOR KIEHL answered that he did not recall the number of the
amendment.
2:46:37 PM
SENATOR HUGHES said she was unsure if Mayor Ledford was aware
that the bill was amended beyond restaurant licenses to all
types of licenses.
2:46:54 PM
SENATOR SHOWER moved to report SB 9, Version B, as amended, from
committee with individual recommendations and attached fiscal
note(s). There being no objection CSSB 9(JUD) was reported from
the Senate Judiciary Standing Committee.
2:47:27 PM
At ease
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 82 Presentation.4.12.21.pdf |
SJUD 4/12/2021 1:30:00 PM |
SB 82 |
| SB 82 Sponsor Statement version A.pdf |
SJUD 4/12/2021 1:30:00 PM |
SB 82 |
| SB 82 version A.PDF |
SJUD 4/12/2021 1:30:00 PM |
SB 82 |
| SB 82 Sectional Analysis version A.pdf |
SJUD 4/12/2021 1:30:00 PM |
SB 82 |
| SB 82 Law Fiscal Note.pdf |
SJUD 4/12/2021 1:30:00 PM |
SB 82 |
| SB15 Amdnement G.5 Hughes.pdf |
SJUD 4/12/2021 1:30:00 PM |
SB 15 |
| SB15 Amendment G.6 Hughes.pdf |
SJUD 4/12/2021 1:30:00 PM |
SB 15 |
| SB15 amendment G.3 Kiehl.pdf |
SJUD 4/12/2021 1:30:00 PM |
SB 15 |