Legislature(2019 - 2020)BELTZ 105 (TSBldg)

02/19/2019 01:30 PM Senate LABOR & COMMERCE

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Audio Topic
01:32:10 PM Start
01:33:12 PM Presentation: Innovation in Alaska
02:08:43 PM SB16
02:29:03 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentation: TELECONFERENCED
Innovation in Alaska by Joel Cutcher-Gershenfeld
& Asta Kristin SigurJonsdottir
+= SB 16 ALCOHOL LIC:FAIRS,THEATRES,CONCERTS;BONDS TELECONFERENCED
Moved CSSB 16(L&C) Out of Committee
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
        SB 16-ALCOHOL LIC:FAIRS,THEATRES,CONCERTS;BONDS                                                                     
                                                                                                                              
2:08:43 PM                                                                                                                    
CHAIR  REINBOLD reconvened  the  meeting and  announced that  the                                                               
final order  of business  would be  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."                                                                                                               
                                                                                                                                
SENATOR COSTELLO  made a motion  to adopt the  proposed committee                                                               
substitute for SB 16, labeled  31-LS0283\U, Bruce, 2/18/19 as the                                                               
working document.                                                                                                               
                                                                                                                                
SENATOR BISHOP objected for the purpose of discussion.                                                                          
                                                                                                                                
2:09:46 PM                                                                                                                    
NATASHA MCCLANAHAN,  Staff, Senator  Lora Reinbold,  Alaska State                                                               
Legislature, Juneau,  on behalf  of the committee,  explained the                                                               
changes  from  the  original  bill, Version  A  to  the  proposed                                                               
committee substitute (CS) for SB 16, Version U.                                                                                 
                                                                                                                                
She said that Version U  clarifies that a performing arts theatre                                                               
license  can only  be  transferred to  another  person. It  would                                                               
place  additional  parameters  on  beer and  wine  service  in  a                                                               
performing  arts  service.  The  service must  be  restricted  to                                                               
specified  areas,  including  portions of  the  audience  viewing                                                               
area. It can  only be served if  the event is expected  to have a                                                               
crowd that is  predominately comprised of those that  are over 21                                                               
years  of age.  It  clarifies that  skiing  and snowboarding  are                                                               
included in the definition of  recreational site. It provides for                                                               
an  immediate  effective  date along  with  other  technical  and                                                               
conforming changes.                                                                                                             
                                                                                                                                
2:11:11 PM                                                                                                                    
SENATOR  PETER   MICCICHE,  Alaska  State   Legislature,  Juneau,                                                               
Alaska, Testified  as sponsor of  SB 16. offered his  belief that                                                               
the technical issues  were resolved in the process.  It will help                                                               
the  Alcoholic Beverage  Control Board  in applying  the statutes                                                               
and regulating alcohol. He said that  his priority with SB 16 was                                                               
to address  issues at the  Alaska State  Fair and to  ensure that                                                               
the fair will be able to  serve alcoholic beverages as it has for                                                               
the past 37  years. He said this bill presents  an opportunity to                                                               
address several  other issues,  including alcohol  consumption at                                                               
performing arts centers and ski areas.                                                                                          
                                                                                                                                
2:12:57 PM                                                                                                                    
EDRA  MORLEDGE,  Staff,  Senator  Peter  Micciche,  Alaska  State                                                               
Legislature, Juneau,  said that the committee  substitute has two                                                               
new sections,  but she would  briefly review all sections  of the                                                               
bill:                                                                                                                           
                                                                                                                                
     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)                                                                                  
                                                                                                                                
2:14:32 PM                                                                                                                    
MS.  MORLEDGE  continued to  review  the  sectional analysis  for                                                               
Version U:                                                                                                                      
                                                                                                                                
     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)                                                                     
                                                                                                                                
2:15:47 PM                                                                                                                    
SENATOR BIRCH  thanked Senator Micciche for  including skiing and                                                               
snowboarding  in the  definition of  "recreational site."  He has                                                               
worked with the  Alcoholic Beverage Control Board  the past year.                                                               
He said it was  a bit of a tangle, but this  should help clear it                                                               
up.                                                                                                                             
                                                                                                                                
2:16:33 PM                                                                                                                    
CHAIR REINBOLD opened public testimony on SB 16.                                                                                
                                                                                                                                
2:16:46 PM                                                                                                                    
STEPHEN  RICE, President,  Tanana Valley  State Fair  Association                                                               
(TVSFA), Board  of Directors, Fairbanks,  spoke in support  of SB
16. The TVSFA  welcomes any action that the  legislature takes to                                                               
continue to  allow fairs, theaters, and  other recreational sites                                                               
to improve their services to  communities and enhance the quality                                                               
of life for  Alaskans. He asked the committee to  ensure that the                                                               
provisions of SB 16 are  available to all communities, regardless                                                               
of  location  and  population.  He  also  urged  members  not  to                                                               
restrict lawful  business practices.  The TVSFA  provides alcohol                                                               
at its  events via a vendor  with a caterer's license.  The board                                                               
plans  on continuing  to use  a caterer  but would  like to  have                                                               
other options.                                                                                                                  
                                                                                                                                
2:20:18 PM                                                                                                                    
SHERI  MUSGRAVE, Beverage  Manager,  Alaska  State Fair,  Palmer,                                                               
spoke in support of SB 16.  She thanked the sponsor and committee                                                               
for their  work. She said that  the Alaska State Fair  would like                                                               
to avoid misinterpretation of the  fair's license category by the                                                               
current   and  future   Alcohol   &   Marijuana  Control   Office                                                               
administration.                                                                                                                 
                                                                                                                                
2:21:09 PM                                                                                                                    
ROBERT WELLS,  Board Member, Skeetawk,  Palmer, spoke  in support                                                               
of  SB 16.  said that  Skeetaw is  a non-profit  ski area  in the                                                               
Matanuska-Susitna Valley.  The name  "Skeetawk" is  an Athabascan                                                               
name meaning, "Where we all  slide down." The executive director,                                                               
Annie O'Connell, asked  to go on record in support  of Version U,                                                               
that clarify  the definition of  recreational sites  includes ski                                                               
and snowboarding areas.                                                                                                         
                                                                                                                                
2:22:18 PM                                                                                                                    
PAUL  A.  SHADURA  II,  representing  himself,  Kenai,  spoke  in                                                               
support of SB 16. He  said that he appreciated Senator Micciche's                                                               
efforts to  sponsor the bill,  which addresses  recreational site                                                               
licensees. The Alaska State Fair  is a family event that attracts                                                               
Alaskans from throughout  the state in all  social categories. He                                                               
also offered  his support for  the efforts of  Alcoholic Beverage                                                               
Control Board to maintain compliance.  He offered his belief that                                                               
this bill  will enhance the  entertainment and pleasure  of those                                                               
attending special  events. The state should  not hinder functions                                                               
that represent an  important part of our Alaskan way  of life, he                                                               
said.                                                                                                                           
                                                                                                                                
2:23:35 PM                                                                                                                    
JEROME  HERTEL,  General  Manager,  Alaska  State  Fair,  Palmer,                                                               
Alaska, spoke  in support of SB  16. This bill will  more clearly                                                               
define the business  model of the Alaska State Fair  and bring an                                                               
end to  the misinterpretation of  the recreational  site licenses                                                               
that the fair has been experiencing.                                                                                            
                                                                                                                                
2:24:41 PM                                                                                                                    
STU GRAHAM,  representing himself,  Wasilla, spoke in  support of                                                               
SB 16.  He said that he  also serves as  a member of the  City of                                                               
Wasilla  City   Council  and  is  First   Vice-President,  Alaska                                                               
Municipal  League and  a board  member of  the Valley  Performing                                                               
Arts.  However, he  is speaking  on behalf  of himself  today. He                                                               
offered his  support for SB  16 to  clarify the statutes,  so the                                                               
Alaska State Fair and other  fairs can have a reasonable business                                                               
model. This bill does not release  them from the oversight of the                                                               
ABC Board, so the board could  take action if problems arise with                                                               
the liquor license.                                                                                                             
                                                                                                                                
2:26:10 PM                                                                                                                    
ALEX KOPLIN, representing himself, Homer,  spoke in support of SB
16. He  suggested the license  fees and fares should  be reviewed                                                               
and adjusted to raise additional revenue in the adjusted.                                                                       
                                                                                                                                
2:27:30 PM                                                                                                                    
CHAIR  REINBOLD  commented  that  the  board  hopes  to  consider                                                               
license fees in another bill before the committee.                                                                              
                                                                                                                                
2:27:37 PM                                                                                                                    
CHAIR  REINBOLD,  after  first   determining  no  one  wished  to                                                               
testify, closed public testimony on SB 16.                                                                                      
                                                                                                                                
2:27:55 PM                                                                                                                    
                                                                                                                                
SENATOR BISHOP removed his objection.                                                                                           
                                                                                                                                
2:28:18 PM                                                                                                                    
SENATOR  COSTELLO   moved  to   report  the   proposed  Committee                                                               
Substitute  for  SB  16,  labeled  31-LS0283\U,  Bruce,  2/18/19,                                                               
Version  U, from  committee with  individual recommendations  and                                                               
attached  fiscal  note(s). There  being  no  objection, the  CSSB
16(L&C) was reported from the  Senate Labor and Commerce Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
2:28:49 PM                                                                                                                    
CHAIR REINBOLD reviewed upcoming committee announcements.                                                                       
                                                                                                                                
2:29:03 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair Reinbold  adjourned the Senate Labor  and Commerce Standing                                                               
Committee meeting at 2:29 p.m.                                                                                                  

Document Name Date/Time Subjects
CSSB 16(L&C).pdf SL&C 2/19/2019 1:30:00 PM
SB 16
CSSB 16(L&C) Summary of Changes Ver. A to U.pdf SL&C 2/19/2019 1:30:00 PM
SB 16
02.19.2019 SB 16 Support.pdf SL&C 2/19/2019 1:30:00 PM
SB 16