Legislature(2013 - 2014)BELTZ 105 (TSBldg)
04/16/2014 07:00 AM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB281 | |
| HB309 | |
| HB357 | |
| HB169 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 281 | TELECONFERENCED | |
| + | HB 309 | TELECONFERENCED | |
| + | HB 357 | TELECONFERENCED | |
| + | HB 169 | TELECONFERENCED | |
| += | SB 8 | TELECONFERENCED | |
HB 309-DISTILLERY LICENSES
7:20:07 AM
CHAIR DUNLEAVY reconvened the meeting and announced the
consideration of HB 309. "An Act relating to distillery
licenses." He noted that this was the first hearing. [CSHB
309(L&C) was before the committee.]
7:20:29 AM
REPRESENTATIVE CHRIS TUCK, Alaska State Legislature, Juneau,
Alaska, sponsor of HB 309, introduced the legislation speaking
to the following sponsor statement:
The purpose of HB 309 is to modernize the distillery
laws in Alaska, which are outdated and fail to address
the new trend in craft beverage production. This
legislation brings Alaska's small distillers on par
with local wine and beer makers by allowing for
tastings, sales of small amounts for on premise
consumption, and limited direct sales for off premise
consumption. The ability to retail in-house allows a
distillery to subsidize a visitor-friendly gift shop
or hospitality room and increases the marketability of
tours. This will help promote Alaskan-made products
and enable this new local industry to compete with
imported goods.
Alaska's small distilleries are attempting to enter a
market and compete in a field that, since Prohibition
ended, has been dominated by large manufacturing
companies that have the economic benefit of extremely
large-scale production. Allowing distilleries to cater
to tourists helps offset the substantial competitive
disadvantage that our local distillers have when
competing with out-of-state distillers.
Small distilleries in Alaska purchase local
agricultural products, create jobs, support their
local economies, create export products for Alaska,
and have the potential to significantly contribute to
the tourism industry in Alaska.
Locally distilled spirits are part of an exciting
growth in artisanal, small scale, domestic
manufacturing. The current restrictions prevent the
businesses producing these products from reaching
their full potential in the state's tourism industry
and to position themselves to compete on a national
and global level.
The changes are on par with what breweries have done
to promote regionally-based micro-breweries. Small-
scale spirits producers need similar changes to allow
them to innovate, create Alaskan-based manufacturing
jobs, support Alaskan agriculture, support tourism
through visitor centers and tasting rooms, and compete
effectively in the marketplace with reasonably-priced
handcrafted spirits.
REPRESENTATIVE TUCK stated that HB 309 will allow the public to
purchase up to one gallon of the product for consumption off
premises and not more than three ounces for consumption on
premises. The public will also be able to sample small portions
of the product free of charge while in the facility. He noted
that the House Labor and Commerce Committee amended the bill to
require servers to take an alcohol server education course and
establishments to post the necessary warning signs. The bill has
wide support throughout the state and has the potential to
stimulate the economy.
SENATOR OLSON asked how the legislation would affect Alaskans,
particularly in rural areas, who are vulnerable to alcohol abuse
and whether he'd heard from that population.
REPRESENTATIVE TUCK stated that the local option laws regarding
the sale, importation, and possession of alcohol still apply.
The ABC Board issues the specific license types and local review
is conducted before any business can operate.
SENATOR OLSON asked what affect the legislation would have on
damp and dry communities.
REPRESENTATIVE TUCK suggested that Shirley Coté with the ABC
Board be added to the discussion.
7:24:26 AM
CHAIR DUNLEAVY said his understanding is that this is a tourism
bill.
REPRESENTATIVE TUCK agreed and added that there are five
distilleries throughout the state from Fairbanks to the Kenai
Peninsula to the small community of Haines in Southeast.
CHAIR DUNLEAVY asked how the bill addresses people who sample
the product daily and to excess.
REPRESENTATIVE TUCK directed attention to the restrictions in
paragraphs (1), (2), and (3) on page 2, lines 1-7. These
provisions establish that the distillery cannot reflect a
drinking establishment. Responding to a further question about
safeguarding against over consumption, he opined that the
distillers probably wouldn't give multiple free samples to the
same person because it wouldn't benefit their business.
SENATOR MICCICHE recapped what the bill allows.
REPRESENTATIVE TUCK noted that distilleries are able to sell
proportionally less than wineries and breweries.
7:27:28 AM
HEATHER SHADE, Co-owner, Port Chilkoot Distillery, Haines,
Alaska, testified in support of HB 309. She stated that her
small distillery creates a specialty product that is
specifically marketed to tourists, but the current laws hinder
potential growth. HB 309 updates the laws so that distilleries
can participate in the tourism industry just as breweries and
wineries do. She reported that the community of Haines supports
the legislation which will create jobs and add to the economy.
7:28:42 AM
DALE FOX, President and CEO, CHARR, Anchorage, Alaska, testified
that the Alaska CHARR Government Affairs Committee unanimously
endorsed HB 309. It gives distilleries the same rights to sell
small quantities of alcohol as was previously given to breweries
and wineries in Alaska. He concluded that the bill is fair and
uncontroversial and it helps a new Alaska industry.
7:29:38 AM
SHIRLEY COTÉ, Director, Alcoholic Beverage Control (ABC) Board,
Department of Commerce, Community and Economic Development
(DCCED), introduced herself and offered to answer questions.
SENATOR MICCICHE asked how the bill would affect wet and damp
communities.
MS. COTÉ replied the importation of alcohol laws would pertain
to this new distillery license as well.
SENATOR MICCICHE asked if the restrictions under AS 04.16.030
would apply to distilleries.
MS. COTÉ answered yes and the bill also requires the alcohol
server education course. It teaches the characteristics of an
intoxicated person and how to ensure that underage people are
not gaining access to alcohol.
7:31:47 AM
KATHLEEN STRAUSBAUGH, Drafting Attorney, Legislative Legal
Services, Legislative Affairs Agency, Juneau, Alaska, offered to
answer questions.
CHAIR DUNLEAVY opened and closed public testimony. Finding no
further questions or comments, he solicited a motion.
7:32:18 AM
SENATOR MICCICHE moved to report HB 309, Version R, from
committee with individual recommendations and attached fiscal
note(s).
CHAIR DUNLEAVY announced that without objection CSHB 309(L&C)
was reported from the Senate Labor & Commerce Standing
Committee.