Legislature(2019 - 2020)BELTZ 105 (TSBldg)

03/26/2019 01:30 PM Senate LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 69 EXEMPT CHARITABLE GAMING FROM PERMIT/FEES TELECONFERENCED
<Bill Hearing Canceled>
-Invited Testimony Followed by Public Testimony-
+= SJR 8 U.S.-MEXICO-CANADA AGREEMENT ON TRADE TELECONFERENCED
Moved SJR 8 Out of Committee
-Invited Testimony Followed by Public Testimony-
*+ SB 83 TELECOMMUNICATIONS REGULATION/EXEMPTIONS TELECONFERENCED
Heard & Held
-Invited Testimony Followed by Public Testimony-
*+ SB 52 ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG TELECONFERENCED
Heard & Held
-Invited Testimony Followed by Public Testimony-
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SB 44 TELEHEALTH: PHYSICIAN ASSISTANTS; DRUGS TELECONFERENCED
Moved CSSB 44(L&C) Out of Committee
**Streamed live on AKL.tv**
         SB 52-ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG                                                                      
                                                                                                                                
2:30:54 PM                                                                                                                    
CHAIR  REINBOLD reconvened  the meeting.  She announced  that the                                                               
next  order of  business would  be SENATE  BILL NO.  52, "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."                                                                                                                          
                                                                                                                                
2:31:05 PM                                                                                                                    
                                                                                                                                
SENATOR  COSTELLO  clarified the  original  bill  was before  the                                                               
committee. Senator Bishop objected for purposes of discussion.                                                                  
                                                                                                                                
2:31:31 PM                                                                                                                    
EDRA  MORLEDGE,  Staff,  Senator  Peter  Micciche,  Alaska  State                                                               
Legislature,  Juneau,  paraphrased  from the  sponsor  statement,                                                               
which read as follows:                                                                                                          
                                                                                                                                
     SB  52 modernizes  the Title  4 statutes  governing the                                                                    
     Alcoholic  Beverage  Control  Board (board).  The  bill                                                                    
     allows the  board to function more  efficiently as they                                                                    
     regulate  the   alcohol  industry  in  a   manner  that                                                                    
     promotes  public safety  and  health, while  supporting                                                                    
     the alcohol  industry's continued growth  and viability                                                                    
     in today's  current climate. This  bill is  the product                                                                    
     of  a seven-year,  unprecedented collaboration  of over                                                                    
     100  stakeholders  from  a  diverse  group  of  alcohol                                                                    
     industry  representatives,  public  health  and  safety                                                                    
     entities,  local governments  and advocates  for youth.                                                                    
     Stakeholders   established   shared    goals   as   the                                                                    
     foundation for developing recommendations:                                                                                 
                                                                                                                                
     ? Promoting a fair  business climate and protect public                                                                    
     health and  safety. ? Creating rational  regulation for                                                                    
     all tiers of the state's alcohol industry.                                                                                 
                                                                                                                                
     ? Limiting youth access to alcohol.                                                                                        
                                                                                                                                
     ?  Promoting responsible  alcohol  use  and reduce  the                                                                    
     harms of overconsumption.                                                                                                  
                                                                                                                                
     ? Implementing  without negative impacts  on businesses                                                                    
     and   responsible   operators.    The   result   is   a                                                                    
     reorganization  that  clearly  defines the  rights  and                                                                    
     obligations  of licensees,  restructures penalties  for                                                                    
     offenses in  Title 4, and  organizes the statutes  in a                                                                    
     logical, common-sense  manner for all users  of Title 4                                                                    
     statutes.                                                                                                                  
                                                                                                                                
     The bill  requires that the director  prepare an annual                                                                    
     enforcement,   education,   training,  and   prevention                                                                    
     budget and requires  the Board to review  fees every 10                                                                    
     years.   Penalty  sections   are   amended  to   ensure                                                                    
     consistent   enforcement   and   just   outcomes.   New                                                                    
     statutory  provisions retain  the three-tier  licensing                                                                    
     system   but   create   more  flexibility   for   small                                                                    
     manufacturers;  create  a  new  endorsement  system  to                                                                    
     expand  the  boundaries   of  licensed  businesses  and                                                                    
     accommodate special  events; and modify  the permitting                                                                    
     system  for  clarity.  The   bill  also  creates  local                                                                    
     control   in   community    population   limits,   adds                                                                    
     mechanisms  to  prevent  underage  access  to  alcohol,                                                                    
     regulates  common  carriers  who  deliver  alcohol  and                                                                    
     provides  for  a   smooth  transitional  implementation                                                                    
     period.                                                                                                                    
                                                                                                                                
2:33:19 PM                                                                                                                    
MS.  MORLEDGE  said one  of  the  main  goals is  to  restructure                                                               
licensing  to make  the current  licensing clearer  and to  place                                                               
regulatory provisions  in statute.  The permitting  process would                                                               
remain  in  regulation,  she  said.  She  said  the  goal  is  to                                                               
streamline  the  process,  place  it under  one  title  and  make                                                               
regulation  easy for  the board  and industry  members. She  said                                                               
that  the  goals  included promoting  a  fair  business  climate,                                                               
protecting  public health  and safety,  limiting youth  access to                                                               
alcohol, promoting  responsible alcohol  use, reducing  the harms                                                               
of  overconsumption, and  implementing change  without negatively                                                               
harming existing businesses and  responsible operators. The other                                                               
main  goal  is to  make  Title  04  as  clear and  consistent  as                                                               
possible  for  the board,  licensees,  and  law enforcement,  she                                                               
said.                                                                                                                           
                                                                                                                                
2:34:43 PM                                                                                                                    
MS.  MORLEDGE explained  the key  concepts in  Title 04  were the                                                               
three-tier    system,    including   separating    manufacturers,                                                               
wholesalers,  and retailers  to  prevent  monopolies. Second,  it                                                               
would restructure and reorganize  the licensing system to include                                                               
the  clearly  defined  categories.   Finally,  it  would  address                                                               
population  limits,  which  regulates   the  number  of  licenses                                                               
available in  each community  by type. One  of the  issues raised                                                               
has been  the length  of the  bill. She  explained that  this was                                                               
necessary because changes affect many different sections.                                                                       
                                                                                                                                
2:35:25 PM                                                                                                                    
SENATOR PETER  MICCICHE, Alaska State Legislature,  Juneau, spoke                                                               
as sponsor of  SB 52. He stated  that he has worked  on a rewrite                                                               
of  the  alcohol beverage  control  statutes  for at  least  five                                                               
years.                                                                                                                          
                                                                                                                                
2:36:15 PM                                                                                                                    
SENATOR BIRCH  asked whether this  was substantially the  same as                                                               
last year's bill or if there were any substantive changes.                                                                      
                                                                                                                                
SENATOR MICCICHE answered  that it was essentially  the same bill                                                               
that passed last year, with  a few minor changes. The stakeholder                                                               
groups met  during the interim  and some minor changes  were made                                                               
at their request.                                                                                                               
                                                                                                                                
2:37:31 PM                                                                                                                    
SENATOR  MICCICHE explained  his interest  in the  rewrite. As  a                                                               
legislator, he  was initially  surprised at  the number  of bills                                                               
that  come before  the legislature  related to  alcohol. Then  he                                                               
discovered that the statutes were  outdated, in part, because the                                                               
industry has dramatically  changed in the last 30  years. He said                                                               
the he  reviewed the public  health and safety  issues, including                                                               
overserving,  serving minors,  and the  quality of  operators. He                                                               
said  that he  realized that  these issues  were intertwined.  He                                                               
pulled together  a group of  stakeholders to address  things that                                                               
did  not  make sense.  He  highlighted  that  the goals  were  to                                                               
support this industry since it is  an important one to the state,                                                               
but still  obtain the best  results for public health  and public                                                               
safety. He said  that SB 52 was  the result of this  work. He has                                                               
observed  the interaction  between  industry  and the  [Alcoholic                                                               
Beverage  Control  Board  (ABC Board).  He  said  that  sometimes                                                               
people are  upset with them  when they  follow the law,  but also                                                               
when they  do not. This bill  would clarify the law,  so everyone                                                               
would  understand  expectations  for operators.  He  offered  his                                                               
belief  that this  bill would  promote a  fair business  climate,                                                               
limit youth  access to alcohol, promote  responsible alcohol use,                                                               
and reduce the  harms of overconsumption. He said  that this bill                                                               
would  implement  these   changes  without  negatively  impacting                                                               
existing businesses and responsible operators.                                                                                  
                                                                                                                                
2:39:43 PM                                                                                                                    
SENATOR MICCICHE  said that the  legislature has been  focused on                                                               
the opioid epidemic. However, alcohol  still represented about 95                                                               
percent of  the substance abuse  problem in Alaska. He  said that                                                               
many  things  that have  affected  public  health and  safety  in                                                               
Alaska  for generations,  including  suicide,  sexual abuse,  and                                                               
domestic violence  were all tied  to alcohol abuse. He  said that                                                               
this bill  would take  it all into  account and  redistribute the                                                               
statutes to make  sense. It would add  licensing and endorsements                                                               
to  reflect  today's  operations   and  provide  a  comprehensive                                                               
approach that resets how alcohol is managed in Alaska.                                                                          
                                                                                                                                
2:41:26 PM                                                                                                                    
MS.  MORLEDGE  said that  pages  1-5  of  the summary  relate  to                                                               
chapter 6 of Title 4, the Alcoholic Beverage Control Board.                                                                     
                                                                                                                                
     Chapter 6: Alcoholic Beverage Control Board                                                                                
                                                                                                                                
      Section 1: Declaration of Policy; purpose; finding.                                                                       
     Adds a new section AS 04.06.005 (Pages 1-2.                                                                                
                                                                                                                                
2:41:57 PM                                                                                                                    
MS. MORLEDGE read Section 2.                                                                                                    
                                                                                                                                
     Section   2:  Authority   of  director.   Adds  a   new                                                                    
     subsection AS  04.06.075 to  require that  the director                                                                    
     of  the Alcoholic  Beverage Control  board (ABC  board)                                                                    
     shall  include in  the  agency's  budget resources  for                                                                    
     administration,  enforcement, education,  training, and                                                                    
     prevention activities under Title 4. (Page 2)                                                                              
                                                                                                                                
2:42:16 PM                                                                                                                    
MS.  MORLEDGE referred  to the  color coded  the document;  green                                                               
referred to  new concepts, yellow highlighting  showed provisions                                                               
that  were  relocated,  and  magenta   referred  to  the  penalty                                                               
provisions.                                                                                                                     
                                                                                                                                
2:43:01 PM                                                                                                                    
SENATOR BISHOP  complimented staff because  this made it  easy to                                                               
follow.                                                                                                                         
                                                                                                                                
2:43:42 PM                                                                                                                    
MS. MORLEDGE read Sections 3 and 4.                                                                                             
                                                                                                                                
     Section   3:  Delegation   of   Authority.  Amends   AS                                                                    
     04.06.080 to  add endorsements to the  delegated powers                                                                    
     of the director of the ABC board. (Page 2)                                                                                 
                                                                                                                                
     Section 4:  Powers and  duties. Amends  AS 04.06.090(b)                                                                    
     to  relocate existing  language in  04.11.070 and  adds                                                                    
     endorsements to the powers of the ABC board. (Page 2)                                                                      
                                                                                                                                
2:44:05 PM                                                                                                                    
MS. MORLEDGE reviewed Section 5.                                                                                                
                                                                                                                                
     Section 5:  Powers and  duties. Amends  AS 04.06.090(e)                                                                    
     to add  endorsements. This  section requires  the board                                                                    
     to  notify all  licensees and  municipalities of  major                                                                    
     changes to Title 4. (Page 2)                                                                                               
                                                                                                                                
She said that the yellow highlighting relates to existing law.                                                                  
                                                                                                                                
2:44:21 PM                                                                                                                    
SENATOR   COSTELLO   acknowledged    that   this   document   was                                                               
highlighted.  She suggested  that the  committee skip  the yellow                                                               
highlighted provisions  and spend more  time on the  new concepts                                                               
that  were  highlighted  in  green  and  the  penalty  provisions                                                               
highlighted in magenta.                                                                                                         
                                                                                                                                
CHAIR REINBOLD agreed.                                                                                                          
                                                                                                                                
2:45:22 PM                                                                                                                    
MS. MORLEDGE  read Section 10, "Proposed  Chapter 9, Endorsements                                                               
and Permits."                                                                                                                   
                                                                                                                                
     Proposed Chapter 9: Licenses, Endorsements and Permits                                                                     
                                                                                                                                
     Section  10: Adds  the  new  Chapter 09  to  Title 4                                                                       
     Licenses,  Endorsements  and  Permits.  Relocates  many                                                                    
     existing   licenses  and   permits  from   Chapter  11,                                                                    
     organizes into  articles of licenses,  endorsements and                                                                    
     permits. (Pages 5-50).                                                                                                     
                                                                                                                                
2:45:36 PM                                                                                                                    
MS. MORLEDGE referred to page  3 of the sectional analysis [shown                                                               
in magenta].                                                                                                                    
                                                                                                                                
     AS  04.09.150.  Failure  to  pay  annual  fee  or  file                                                                    
     affidavit.  States  that  failure   to  pay  an  annual                                                                    
     wholesale fee or  file an affidavit is  a violation and                                                                    
     sets the penalty. (Page 11)                                                                                                
                                                                                                                                
     AS  04.09.160.  Failure to  pay  biennial  fee or  file                                                                    
     declaration. States that failure  to pay a biennial fee                                                                    
     and failure  to file  a declaration are  violations and                                                                    
     sets the penalty. (Pages 11-12)                                                                                            
                                                                                                                                
2:46:21 PM                                                                                                                    
MS. MORLEDGE reviewed page 4,  [shown in yellow] that reorganizes                                                               
existing retail licenses.                                                                                                       
                                                                                                                                
2:46:39 PM                                                                                                                    
At-ease.                                                                                                                        
                                                                                                                                
2:47:24 PM                                                                                                                    
CHAIR REINBOLD reconvened the meeting.                                                                                          
                                                                                                                                
MS. MORLEDGE  reverted to  page 2, to  "New Chapter  9: Licenses,                                                               
Endorsements  and  Permits."  She   explained  that  this  entire                                                               
section pertained  to "Article  1, License  Types and  Article 2,                                                               
Manufacturer   Licenses,"   including    brewery,   winery,   and                                                               
distillery  manufacturer  licenses.  These  provisions  refer  to                                                               
existing licenses, which were put into the new article.                                                                         
                                                                                                                                
2:47:56 PM                                                                                                                    
MS. MORLEDGE read AS 04.09.050.                                                                                                 
                                                                                                                                
     AS   04.09.050.   Authorized  sales.   Allows   smaller                                                                    
     manufacturers to self-distribute  to retail, wholesale,                                                                    
     permitted  and  out  of  state  or  country  licensees.                                                                    
     Requires  large manufacturers  to go  through wholesale                                                                    
     distributors and not hold retail licenses. (Pages 6-7)                                                                     
                                                                                                                                
MS. MORLEDGE referred to page  3 of the sectional analysis, which                                                               
relocated  the   existing  penalties  in  AS   04.09.060  and  AS                                                               
04.09.070. She read the new penalty provision in AS 04.09.080.                                                                  
                                                                                                                                
     AS 04.09.060.  Unlicensed manufacturing.  Relocates the                                                                    
     existing  penalty   for  unlicensed   manufacture  from                                                                    
     04.11.010. (Page 7)                                                                                                        
                                                                                                                                
     AS  04.09.070.  Unlicensed  manufacturing  in  a  local                                                                    
     option  area.   Relocates  the  existing   penalty  for                                                                    
     unlicensed  manufacture in  a  local  option area  from                                                                    
     04.11.010. (Pages 7-8)                                                                                                     
                                                                                                                                
     AS 04.09.080.  Unauthorized manufacturer  sale. Defines                                                                    
     unauthorized manufacturer  sale as  violating 04.09.050                                                                    
     and sets the penalty. (Page 8)                                                                                             
                                                                                                                                
SENATOR   MICCICHE  suggested   she   review   the  new   penalty                                                               
provisions.                                                                                                                     
                                                                                                                                
2:49:20 PM                                                                                                                    
MS.  MORLEDGE  read  AS  04.09.150 and  AS  04.09.160  [shown  in                                                               
magenta].                                                                                                                       
                                                                                                                                
     AS  04.09.150.  Failure  to  pay  annual  fee  or  file                                                                    
     affidavit.  States  that  failure   to  pay  an  annual                                                                    
     wholesale fee or  file an affidavit is  a violation and                                                                    
     sets the penalty. (Page 11)                                                                                                
                                                                                                                                
     AS  04.09.160.  Failure to  pay  biennial  fee or  file                                                                    
     declaration. States that failure  to pay a biennial fee                                                                    
     and failure  to file  a declaration are  violations and                                                                    
     sets the penalty. (Pages 11-12)                                                                                            
                                                                                                                                
2:49:40 PM                                                                                                                    
MS. MORLEDGE referred  to page 4, "Article  4. Retail Licensees,"                                                               
[shown   in  yellow]   were   provisions   being  relocated   and                                                               
reorganized.  In response  to Chair  Reinbold, she  explained the                                                               
reason to  reorganize was  because some  licenses exist  in other                                                               
areas of the  state statutes. She said the sponsor  seeks to have                                                               
all of the licenses relocated to AS 04.09.                                                                                      
                                                                                                                                
MS. MORLEDGE  reviewed page  5 of the  sectional analysis  to the                                                               
provisions  [shown  in green]  related  to  brewery, winery,  and                                                               
distillery licenses.                                                                                                            
                                                                                                                                
     AS  04.09.310.  Brewery  retail  license.  Creates  new                                                                    
     license  type   based  on   existing  language   in  AS                                                                    
     04.11.130 for brewery  retail activities, sets biennial                                                                    
     fee at  $1,250, requires retail license  to be adjacent                                                                    
     to  manufacturing   location,  and  sets   penalty  for                                                                    
     failure to comply with license terms. (Pages 21-22)                                                                        
                                                                                                                                
     AS  04.09.320.  Winery   retail  license.  Creates  new                                                                    
     license  type   based  on   existing  language   in  AS                                                                    
     04.11.140 for  winery retail activities,  sets biennial                                                                    
     fee at  $1,250, requires retail license  to be adjacent                                                                    
     to  5  manufacturing  location,  defines  sales  volume                                                                    
     limits  for   cider  and  mead  depending   on  alcohol                                                                    
     content, and  sets penalty for  failure to  comply with                                                                    
     license terms. (Pages 22-23)                                                                                               
                                                                                                                                
     AS  04.09.330. Distillery  retail license.  Creates new                                                                    
     license  type   based  on   existing  language   in  AS                                                                    
     04.11.170  for   distillery  retail   activities,  sets                                                                    
     biennial fee  at $1,250, requires retail  license to be                                                                    
     adjacent  to manufacturing  location, and  sets penalty                                                                    
     for failure  to comply  with license terms.  (Pages 23-                                                                    
     24)                                                                                                                        
                                                                                                                                
2:51:16 PM                                                                                                                    
MS. MORLEDGE reviewed AS 04.09.350 and AS 04.09.360 [shown in                                                                   
green], which were new provisions.                                                                                              
                                                                                                                                
     AS  04.09.350.  Seasonal  restaurant  or  eating  place                                                                    
     license.  Creates  new   license  type,  sets  biennial                                                                    
     license fee  at $1,250,  defines which  communities can                                                                    
     qualify for having this license  type, sets out formula                                                                    
     for   determining  number   of  allowed   licenses  per                                                                    
     community, and sets penalty for  failure to comply with                                                                    
     license terms. (Pages 26-27)                                                                                               
                                                                                                                                
     AS 04.09.360.  Winery direct shipment  license. Creates                                                                    
     new  license   type  authorizing  direct   to  consumer                                                                    
     (including online)  sales of wine for  in-state or out-                                                                    
     of-state  winery, sets  biennial license  fee at  $200,                                                                    
     directs  the  board  to  develop  an  application  form                                                                    
     specifically for this license,  prohibits sales by this                                                                    
     license type  to local option  areas, and  sets penalty                                                                    
     for failure  to comply  with license terms.  (Pages 27-                                                                    
     29)                                                                                                                        
                                                                                                                                
2:51:51 PM                                                                                                                    
SENATOR MICCICHE explained the brewery, winery, and distillery                                                                  
references on this slide were incorrect and would be updated.                                                                   
                                                                                                                                
2:52:16 PM                                                                                                                    
MS. MORLEDGE  reviewed "Article  5. Endorsements,"  on page  6 of                                                               
the  sectional analysis  [shown in  green]. She  said that  these                                                               
provisions  would  allow  for  manufacturer  licenses  to  obtain                                                               
varying endorsements  for activities occurring on  their licensed                                                               
premises.  As  an  example,  she  referred  to  the  manufacturer                                                               
sampling endorsement under as 04.09.410.                                                                                        
                                                                                                                                
     AS   04.09.410.   Manufacturer  sampling   endorsement.                                                                    
     Creates new  endorsement for  onsite sampling  based on                                                                    
     existing language from  manufacturing licenses, defines                                                                    
     per person per day volume  limits by product type, sets                                                                    
     biennial  fee at  $200, sets  penalties for  unendorsed                                                                    
     sampling and endorsement noncompliance. (Pages 30-31)                                                                      
                                                                                                                                
She explained  that breweries currently provide  tasting samples.                                                               
This  provision  would  create   a  new  endorsement  for  onsite                                                               
sampling.                                                                                                                       
                                                                                                                                
2:53:11 PM                                                                                                                    
MS. MORLEDGE reviewed AS 04.09.420.                                                                                             
                                                                                                                                
     AS  04.09.420.  Multiple   fixed  counter  endorsement.                                                                    
     Creates  new endorsement  for  multiple fixed  counters                                                                    
     with language relocated  from duplicate license section                                                                    
     in  AS  04.11.090,  sets biennial  fee  at  $200,  sets                                                                    
     initial  application fee  of $1,250  per counter,  sets                                                                    
     penalties for endorsement  noncompliance and unendorsed                                                                    
     service. (Pages 31-32)                                                                                                     
                                                                                                                                
She said that  a bar with several rooms would  get an endorsement                                                               
under one license  rather than obtaining a  duplicate license for                                                               
each of the rooms.                                                                                                              
                                                                                                                                
2:53:30 PM                                                                                                                    
MS. MORLEDGE reviewed AS 04.09.420.                                                                                             
                                                                                                                                
     AS  04.09.420.  Multiple   fixed  counter  endorsement.                                                                    
     Creates  new endorsement  for  multiple fixed  counters                                                                    
     with language relocated  from duplicate license section                                                                    
     in  AS  04.11.090,  sets biennial  fee  at  $200,  sets                                                                    
     initial  application fee  of $1,250  per counter,  sets                                                                    
     penalties for endorsement  noncompliance and unendorsed                                                                    
     service. (Pages 31-32)                                                                                                     
                                                                                                                                
     AS 04.09.430.  Hotel or motel endorsement.  Creates new                                                                    
     endorsement  using  some  language  relocated  from  AS                                                                    
     04.11.090, sets  biennial fee  at $200,  sets penalties                                                                    
     for unendorsed  hotel or motel service  and endorsement                                                                    
     noncompliance. (Pages 32-33                                                                                                
                                                                                                                                
     AS  04.09.440. Large  resort  endorsement. Creates  new                                                                    
     endorsement  using  some  language  relocated  from  AS                                                                    
     04.11.090, defines  a large  resort, sets  biennial fee                                                                    
     at  $200, sets  penalties for  unendorsed large  resort                                                                    
     service and endorsement noncompliance. (Pages 33-35)                                                                       
                                                                                                                                
2:53:53 PM                                                                                                                    
SENATOR BISHOP asked if the definition  of a large resort was for                                                               
a 100-room occupancy.                                                                                                           
                                                                                                                                
2:54:58 PM                                                                                                                    
ANNA  BRAWLEY,   Title  4  Project  Review   Coordinator;  Senior                                                               
Associate,  Agnew Beck  Consulting,  Anchorage,  answered that  a                                                               
large resort  would be a  place that offers  outdoor recreational                                                               
activities and overnight  lodging for guests. It  would also have                                                               
at least 10  contiguous acres. She said that it  could be one big                                                               
property or parcel.                                                                                                             
                                                                                                                                
2:55:22 PM                                                                                                                    
SENATOR BISHOP asked whether 10 acres was the key.                                                                              
                                                                                                                                
MS. BRAWLEY  answered that the  language would  require overnight                                                               
lodging, but it did not require a specific number of rooms.                                                                     
                                                                                                                                
2:55:39 PM                                                                                                                    
MS. MORLEDGE suggested that the  presentation at the next hearing                                                               
would help to clarify some things.                                                                                              
                                                                                                                                
2:56:04 PM                                                                                                                    
MS. MORLEDGE reviewed AS 04.09.450 [shown in green and yellow].                                                                 
                                                                                                                                
     AS  04.09.450.  Restaurant   endorsement.  Creates  new                                                                    
     endorsement   using   language  from   the   Restaurant                                                                    
     Designation  Permit  currently in  regulation,  defines                                                                    
     which license  types may  qualify for  the endorsement,                                                                    
     sets biennial fee at $200,  defines situations in which                                                                    
     minors  may   be  present  on  licensed   premises  for                                                                    
     employment   or   dining,   and  sets   penalties   for                                                                    
     unendorsed    restaurant   service    and   endorsement                                                                    
     noncompliance. (Pages 35-36)                                                                                               
                                                                                                                                
She  said  that some  provisions  were  being redefined  under  a                                                               
separate endorsement.                                                                                                           
                                                                                                                                
     AS  04.09.460.  Package   store  shipping  endorsement.                                                                    
     Creates new endorsement by  relocating language from AS                                                                    
     04.11.150,  allows licensees  to accept  online orders,                                                                    
     sets  biennial fee  at $200,  maintains requirement  to                                                                    
     enter  orders to  customers in  local  option areas  in                                                                    
     written   order  database,   and  sets   penalties  for                                                                    
     unendorsed  package  store   shipping  and  endorsement                                                                    
     noncompliance. (Pages 36-38)                                                                                               
                                                                                                                                
     AS  04.09.470.  Package   store  delivery  endorsement.                                                                    
     Creates new endorsement by  relocating language from AS                                                                    
     04.11.150, sets  biennial fee  at $200,  sets penalties                                                                    
     for unendorsed  package store delivery  and endorsement                                                                    
     noncompliance. (Page 38)                                                                                                   
                                                                                                                                
     AS  04.09.480. Package  store repackaging  endorsement.                                                                    
     Creates  new endorsement  by  relocating language  from                                                                    
     regulation, sets  biennial fee at $200,  sets penalties                                                                    
     for   unendorsed   package    store   repackaging   and                                                                    
     endorsement noncompliance. (Page 39)                                                                                       
                                                                                                                                
2:56:56 PM                                                                                                                    
MS. MORLEDGE turned to page 7 of the sectional analysis.                                                                        
                                                                                                                                
She referred to AS 04.09.490. Package store sampling endorsement                                                                
[shown in green].                                                                                                               
                                                                                                                                
     AS  04.09.490.  Package   store  sampling  endorsement.                                                                    
     Creates  new endorsement,  defines per  person per  day                                                                    
     volume  limits by  product type,  sets biennial  fee at                                                                    
     $200,  sets  penalties  for  unendorsed  package  store                                                                    
     sampling and endorsement noncompliance. (Pages 39-40)                                                                      
                                                                                                                                
She reviewed the next three provision [shown in green and                                                                       
yellow].                                                                                                                        
                                                                                                                                
     AS  04.09.500. Bowling  alley endorsement.  Creates new                                                                    
     endorsement  using  language  from AS  04.11.090,  sets                                                                    
     biennial  fee at  $200, sets  penalties for  unendorsed                                                                    
     bowling  alley service  and endorsement  noncompliance.                                                                    
     (Pages 40-41)                                                                                                              
                                                                                                                                
     AS  04.09.510.  Golf  course endorsement.  Creates  new                                                                    
     endorsement using language from  AS 04.11.115, allows a                                                                    
     beverage  dispensary to  serve  alcoholic beverages  on                                                                    
     its  course,  sets  biennial  fee  at  $200,  and  sets                                                                    
     penalties  for  unendorsed   golf  course  service  and                                                                    
     endorsement noncompliance. (Pages 41-42)                                                                                   
                                                                                                                                
     AS 04.09.520. Brewery  repackaging endorsement. Creates                                                                    
     new   endorsement  by   relocating  language   from  AS                                                                    
     04.11.135, limits  availability to  licensees currently                                                                    
     operating  brewpubs as  of the  bill's effective  date,                                                                    
     sets  biennial   fee  at   $200,  sets   penalties  for                                                                    
     unendorsed   brewery    repackaging   and   endorsement                                                                    
     noncompliance. (Pages 42-43)                                                                                               
                                                                                                                                
2:57:13 PM                                                                                                                    
MS. MORLEDGE reviewed "Article 6. Permits" [shown in yellow],                                                                   
which were consolidated in the same place, she said.                                                                            
                                                                                                                                
She directed attention to AS 04.09.670 [shown in green] on page                                                                 
8.                                                                                                                              
                                                                                                                                
     AS  04.09.670.   Tasting  event  permit.   Creates  new                                                                    
     permit, allows a package store  to host a tasting event                                                                    
     on the  package store's licensed premises,  and service                                                                    
     from its product inventory, sets  a time limit and food                                                                    
     requirement, and  limits to six events  per license per                                                                    
     year. (Pages 47-48)                                                                                                        
                                                                                                                                
MS. MORLEDGE said that this would allow a package store to host                                                                 
a tasting event on premise.                                                                                                     
                                                                                                                                
She reviewed AS 04.09.700 [shown in magenta].                                                                                   
                                                                                                                                
     AS  04.09.700.   Failure  to   comply  with   a  permit                                                                    
     requirement. Sets  the penalties for failure  to comply                                                                    
     with   permit  requirements.   (Pages  48-49)   setting                                                                    
     penalties for requirements                                                                                                 
                                                                                                                                
MS. MORLEDGE reviewed "Article 7. Common Carrier Approval"                                                                      
[shown in green].                                                                                                               
                                                                                                                                
     AS  04.09.750. Common  carrier  approval. Requires  the                                                                    
     board  to approve  a common  carrier  to transport  and                                                                    
     deliver  alcoholic  beverages  to  persons  within  the                                                                    
     state  in  response  to a  consumer's  order  and  sets                                                                    
     requirements and penalties  for common carriers. (Pages                                                                    
     49-50)                                                                                                                     
                                                                                                                                
2:58:30 PM                                                                                                                    
MS. MORLEDGE reviewed "Chapter 11. Licensing. Section 14."                                                                      
                                                                                                                                
     Section  14:  Purchase   from  nonlicensee  prohibited.                                                                    
     Amends AS 04.11.015 to prohibit  the purchase or barter                                                                    
     for  alcoholic beverages  from a  nonlicensee and  adds                                                                    
     penalty with $250 fine. (Page 51)                                                                                          
                                                                                                                                
She related that Section 14 [shown in magenta] added a penalty.                                                                 
                                                                                                                                
2:58:48 PM                                                                                                                    
MS. MORLEDGE said that Sections 16-19 and Section 21 on page 9                                                                  
[shown in magenta] added penalty provisions.                                                                                    
                                                                                                                                
     Section  16:  Board  approval of  transfers.  Adds  new                                                                    
     subsections to AS  04.11.040 (d) and (e) to  make it an                                                                    
     offense and provide for a  penalty for the unauthorized                                                                    
     transfer of  an alcoholic  beverage license  or permit.                                                                    
     It is a violation. (Page 52)                                                                                               
                                                                                                                                
     Section  17:  Reports  required  of  limited  liability                                                                    
     organization. Adds new subsections  to AS 04.11.045 (c)                                                                    
     and  (d) to  add  a  penalty for  failure  to report  a                                                                    
     change in  member interest or  manager with  $250 fine.                                                                    
     (Page 52)                                                                                                                  
                                                                                                                                
     Section 18: Reports required  of corporations. Adds new                                                                    
     subsections  to  AS 04.11.050  (c)  and  (d) to  add  a                                                                    
     penalty  for  failure to  report  a  stock transfer  or                                                                    
     change  of officers  or board  members with  $250 fine.                                                                    
     (Page 52)                                                                                                                  
                                                                                                                                
     Section 19: Reports required  of partnerships. Adds new                                                                    
     subsections  to  AS 04.11.055  (c)  and  (d) to  add  a                                                                    
     penalty   for  failure   to   report   a  transfer   of                                                                    
     partnership interest or change  of general partner with                                                                    
     $250 fine. (Page 52)                                                                                                       
                                                                                                                                
2:59:08 PM                                                                                                                    
MS. MORLEDGE said that Section 20 was relocated. She reviewed                                                                   
Section 21 [shown in magenta], which added a penalty provision.                                                                 
                                                                                                                                
     Section 21:  Nonresident distiller, brewer,  winery, or                                                                    
     wholesaler.   Amends  AS   04.11.060  to   add  a   new                                                                    
     subsection (b)  to provide a penalty  for violating the                                                                    
     previous  section, making  it  a  class A  misdemeanor.                                                                    
     (Page 53)                                                                                                                  
                                                                                                                                
MS. MORLEDGE reviewed Section 23 [shown in green].                                                                              
                                                                                                                                
     Section  23: Application  for  new  license or  permit.                                                                    
     Amends AS  04.11.260 to  exempt winery  direct shipment                                                                    
     license from the application  process for other license                                                                    
     types. (Page 54)                                                                                                           
                                                                                                                                
She  said  that  this  provision would  exempt  a  winery  direct                                                               
shipment license from the application process.                                                                                  
                                                                                                                                
2:59:43 PM                                                                                                                    
SENATOR BISHOP asked whether he  could contact a winery in Oregon                                                               
and have wine shipped directly to his home.                                                                                     
                                                                                                                                
MS.  MORLEDGE   answered  that  existing  wine   clubs  currently                                                               
deliver. However, they were not  licensed companies in the state,                                                               
but this would provide licensure.                                                                                               
                                                                                                                                
SENATOR MICCICHE  explained that the  reason it was  important is                                                               
because anyone can order wine and  liquor, but they may not be of                                                               
age or  be in  a dry community.  He said the  goal is  to license                                                               
them  so the  state knows  who the  companies are  and that  they                                                               
would be taxed similarly to other establishments in Alaska.                                                                     
                                                                                                                                
[SB 52 was held in committee.]                                                                                                  

Document Name Date/Time Subjects
SB44 Amendment Effective Date Amendment SL&C.pdf SL&C 3/26/2019 1:30:00 PM
SB 44
SJR 8 USTR Statement for the Record.pdf SL&C 3/26/2019 1:30:00 PM
SJR 8
SJR 8 Alaska USMCA and Section 232 Impacts and Benefits.pptx SL&C 3/26/2019 1:30:00 PM
SJR 8
SB 83 Version M.pdf SL&C 3/26/2019 1:30:00 PM
SB 83
SB 83 Sponsor Statement.pdf SL&C 3/26/2019 1:30:00 PM
SB 83
SB 83 Sectional Analysis.pdf SL&C 3/26/2019 1:30:00 PM
SB 83
SB 83 Supporting Document Myth v Fact Modernizing Alaska's Telecommunications Legislation - Alaska Telecom Assn.pdf SL&C 3/26/2019 1:30:00 PM
SB 83
SB 83 Supporting Document Modernizing Alaska's Telecommunications Legislation - Alaska Telecom Assn.pdf SL&C 3/26/2019 1:30:00 PM
SB 83
SB 83 Alaska Telecom Association Presentation.pdf SL&C 3/26/2019 1:30:00 PM
SB 83
SB 83 - Letters of Support.pdf SL&C 3/26/2019 1:30:00 PM
SB 83
SB83-DCCED-RCA-03-20-19.pdf SL&C 3/26/2019 1:30:00 PM
SB 83
SB 52 Version U.PDF HL&C 3/11/2020 3:15:00 PM
SJUD 4/22/2019 6:00:00 PM
SL&C 3/26/2019 1:30:00 PM
SB 52
SB 52 Sponsor Statement.pdf SFIN 2/11/2020 9:00:00 AM
SJUD 4/22/2019 6:00:00 PM
SL&C 3/26/2019 1:30:00 PM
SB 52
SB 52 Sectional Analysis 2.19.19.pdf SJUD 4/22/2019 6:00:00 PM
SL&C 3/26/2019 1:30:00 PM
SB 52
SB 52 Title 4 Bill Summary Changes SB 76 (2018) to SB 52 (2019).pdf SJUD 4/22/2019 6:00:00 PM
SL&C 3/26/2019 1:30:00 PM
SB 52 Sectional Analysis v.U.pdf SJUD 4/22/2019 6:00:00 PM
SL&C 3/26/2019 1:30:00 PM
SB 52
SB 52 Summary of Proposed Penalties.pdf SJUD 4/22/2019 6:00:00 PM
SL&C 3/26/2019 1:30:00 PM
SB 52
SB 52 Summary of Goals.pdf HL&C 3/9/2020 3:15:00 PM
SFIN 2/11/2020 9:00:00 AM
SJUD 4/22/2019 6:00:00 PM
SL&C 3/26/2019 1:30:00 PM
SB 52
SB 52 Title 4 Review Report.pdf HFIN 3/24/2020 9:00:00 AM
SFIN 2/11/2020 9:00:00 AM
SL&C 3/26/2019 1:30:00 PM
SB 52
SB52 Title4 Letter Support Firetap Alehouse.pdf SL&C 3/26/2019 1:30:00 PM
SB 52
SB 52 Letter of Support ABC Board 2.18.19.pdf SL&C 3/26/2019 1:30:00 PM
SB 52
SB52 Title4 Resolution Support Firetap Alehouse.pdf SL&C 3/26/2019 1:30:00 PM
SB 52
SB 52 Letter of Support Recover Alaska.pdf SL&C 3/26/2019 1:30:00 PM
SB 52
SB 52 Letter of Support ALPHA 3.25.19.pdf SL&C 3/26/2019 1:30:00 PM
SB 52
SB 52 Letter of Opposition AK Berries.pdf SL&C 3/26/2019 1:30:00 PM
SB 52
SB 52 AK Berries Winery Fees Table.pdf SL&C 3/26/2019 1:30:00 PM
SB 52
SB052-DCCED-AMCO-03-22-19.pdf SL&C 3/26/2019 1:30:00 PM
SB 52
SB052-DHSS-PS-3-22-2019.pdf SL&C 3/26/2019 1:30:00 PM
SB 52
SB052-DCCED-CBPL-02-14-19.pdf SL&C 3/26/2019 1:30:00 PM
SB 52
SB052-DOR-TAX-3-21-2019.pdf SL&C 3/26/2019 1:30:00 PM
SB 52
SJR8-SLAC-03-21-19.pdf SL&C 3/26/2019 1:30:00 PM
SJR 8