02/06/2006 05:00 PM House ECONOMIC DEV., TRADE, AND TOURISM
| Audio | Topic |
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| Start | |
| HB382 | |
| Presentation: Juneau Economic Development Council | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | HB 382 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON ECONOMIC DEVELOPMENT, INTERNATIONAL
TRADE AND TOURISM
February 6, 2006
5:18 p.m.
MEMBERS PRESENT
Representative Mark Neuman, Co-Chair
Representative Jay Ramras, Co-Chair
Representative John Coghill
Representative Bob Lynn
Representative Harry Crawford
MEMBERS ABSENT
Representative Nancy Dahlstrom
Representative Beth Kerttula
COMMITTEE CALENDAR
HOUSE BILL NO. 382
"An Act relating to recorking, sealing, or packaging of wine
served with a meal and removal of recorked, sealed, or packaged
wine from licensed premises."
- MOVED HB 382 OUT OF COMMITTEE
PRESENTATION: JUNEAU ECONOMIC DEVELOPMENT COUNCIL
- HEARD
PREVIOUS COMMITTEE ACTION
BILL: HB 382
SHORT TITLE: RECORKING WINE SERVED WITH A MEAL
SPONSOR(s): REPRESENTATIVE(s) RAMRAS
01/20/06 (H) READ THE FIRST TIME - REFERRALS
01/20/06 (H) EDT, L&C
02/06/06 (H) EDT AT 5:00 PM CAPITOL 120
WITNESS REGISTER
LANCE D. MILLER, Ph.D., Executive Director
Juneau Economic Development Council
Juneau, Alaska
POSITION STATEMENT: Presented information from the Juneau
Economic Development Council (JEDC).
ACTION NARRATIVE
CO-CHAIR MARK NEUMAN called the House Special Committee on
Economic Development, International Trade and Tourism meeting to
order at 5:18:38 PM. Representatives Neuman, Ramras, Coghill,
Lynn, and Crawford were present at the call to order.
HB 382-RECORKING WINE SERVED WITH A MEAL
5:18:50 PM
CO-CHAIR NEUMAN announced that the first order of business would
be HOUSE BILL NO. 382, "An Act relating to recorking, sealing,
or packaging of wine served with a meal and removal of recorked,
sealed, or packaged wine from licensed premises."
5:19:24 PM
CO-CHAIR RAMRAS, speaking as the sponsor, explained that HB 382
is a recorking bill that relates to the consumption of wine on
[a licensed] premise. He expressed his concern about the
consumption of alcohol, blood alcohol concentration (BAC), and
the safety of [Alaska] roads. He added that he's looking for
practical ways to reduce the risk [of alcohol-related accidents]
without generating a significant fiscal note in the process.
5:20:10 PM
CO-CHAIR RAMRAS noted [the general] inclination [of patrons] to
not surrender the value [of purchased wine] and expressed his
desire to apply the "common sense" approach toward [taking
uneaten food home] to the consumption of wine. He informed the
committee that a wine recorking law, which has been adopted in
33 states, generates [a zero] fiscal note. This legislation
would allow, as dictated by the Alcoholic Beverage Control (ABC)
Board, for a restaurant to recork a bottle [of wine].
5:22:17 PM
CO-CHAIR RAMRAS quoted from an e-mail written by Doug Griffin,
Director, ABC Board, which read in part [original punctuation
provided]:
Speaking only for myself and not on behalf of the ABC
Board, I support this legislation. ... This just
removes one more excuse for a person to drink
excessively and endanger the public by driving. This
concern over moderate alcohol consumption leading to a
potential DUI [driving under the influence] arrest has
been heightened in the public's mind and for the
hospitality business owners by the adoption of the .08
BAC standard.
5:22:55 PM
CO-CHAIR RAMRAS opined that although .08 [BAC] is the criminal
standard, [Alaskans] are "better off" if [patrons] leave a
restaurant with a lower BAC as it is well known that [vehicle]
drivers become impaired with the consumption of any [amount] of
alcohol. He opined that although the [BAC] is legal up to .08,
a consumer should not be faced with having to surrender the
value [of the wine] because "in most cases, the consumer
defaults to wanting to somehow enjoy the value that's in front
of them, and if they can't take the bottle with them, then they
consume it."
5:23:44 PM
CO-CHAIR RAMRAS further opined that [HB 382] is good for
restaurants because they are able to continue to sell wine, good
for consumers because they are able to drink until they've had
enough [wine], and good for public safety because some [patrons]
will choose to enjoy the remainder of the bottle [of wine] in
the safety of their home. Since [HB 382] falls under the
provision of the ABC Board, he said that he is very confident
that [the ABC Board] will establish a measure that will allow
for [wine] to be safely recorked. He referenced information
from the Internet regarding new [wine] corks and [wine] corking
instruments - with costs ranging from $13.95 to $93 - [which are
necessary] for a restaurant to properly recork a bottle [of
wine] in order that the open container law isn't violated.
5:24:40 PM
REPRESENTATIVE COGHILL referred to page 1, lines 10-12 [of HB
382], which read [original punctuation provided]: "a bottle of
wine that is recorked, sealed, or packaged as provided in this
subsection is not an open container if the cork reinserted by
the licensee or the seal made by the licensee has not been
disturbed." He asked, "Is there any way around having a cork
inserted in a bottle that would allow it to still be an open
container?"
5:25:18 PM
CO-CHAIR RAMRAS responded that the public safety risk associated
with one entering a liquor store and making his/her purchase an
open container also, to some extent, exists with [HB 382]. He
added that a recorker results in the [wine] bottle resembling
its original form.
5:26:21 PM
CO-CHAIR RAMRAS informed the committee that the ABC Board would
have the ability to regulate the manner in which a bottle of
wine is recorked to its satisfaction.
5:26:49 PM
REPRESENTATIVE COGHILL said that he could appreciate the cork
being reinserted in a manner that a corkscrew is needed to
uncork [the bottle of wine]. He expressed his concern about
[patrons] reinserting the cork by hand so that the remainder of
the cork protrudes, which would allow for [patrons] to uncork
[the bottle of wine] again by hand. He said, "To me, that would
not be enough."
CO-CHAIR RAMRAS explained that the language [of HB 382] is
worded such that a corking instrument would be required to
remove [the cork].
5:28:09 PM
CO-CHAIR NEUMAN mentioned Mr. Griffin's e-mail, which read:
"The bill provides for the ABC Board to establish safe and
simple ways to address this issue and I do not see this as a
problem." He added that fortunately, Alaska has the advantage
of following 33 states [that already allow recorking].
5:28:39 PM
REPRESENTATIVE COGHILL noted that he and Co-Chair Ramras have a
conflict of interest. He opined that [HB 382] is a "good common
sense measure" and that he doesn't have a problem with it.
5:29:20 PM
CO-CHAIR RAMRAS explained that in his private sector job, he as
well as bartenders have had to chase people who wander outside
with an open container because it's against the law. The intent
behind [HB 382] is to make [Alaska] roads more secure by
allowing [patrons] to have bottles of wine recorked to enjoy it
in the privacy of their home.
5:30:55 PM
CO-CHAIR NEUMAN asked, "Do you feel that any establishment would
have a problem with any restitution from anybody trying to come
back after them because it's been recorked? Do you think that
those regulations pretty much have been established?"
5:31:17 PM
CO-CHAIR RAMRAS answered that the liability isn't any greater
than if [an establishment] serves [a patron] a glass of wine or
over serves [a patron] who has an accident. He added that the
standard liability is the same.
5:31:33 PM
REPRESENTATIVE COGHILL, in regard to product quality liability,
inquired as to whether there have been any challenges to
recorking in other states. He said, "You're taking and
recorking a brand at your own establishment; I just wonder if we
open ourselves up to any other liability."
5:31:59 PM
CO-CHAIR RAMRAS confirmed that he would look into product
quality liability before [HB 382] is heard by the House Labor
and Commerce Standing Committee. He informed the committee that
he has a conflict of interest since he controls two beer and
wine licenses and two beverage dispensary licenses. He added
that he sees people drink more than they intend to, of wine in
particular, so that he/she doesn't surrender the value [of
purchased wine]. He reiterated his advocacy for the "common
sense" approach because he feels that it makes [Alaska] roads
safer.
5:33:05 PM
CO-CHAIR NEUMAN, upon determining that no one else wished to
testify, announced the closure of public testimony.
5:33:11 PM
REPRESENTATIVE COGHILL moved to report HB 382 out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objection, HB 382 was reported out of the
House Special Committee on Economic Development, International
Trade and Tourism.
^PRESENTATION: JUNEAU ECONOMIC DEVELOPMENT COUNCIL
5:33:32 PM
CO-CHAIR NEUMAN announced that the final order of business would
be a presentation from the Juneau Economic Development Council.
5:33:51 PM
LANCE D. MILLER, Ph.D., Executive Director, Juneau Economic
Development Council (JEDC), explained that JEDC is a private
nonprofit organization based in Juneau with programs locally,
regionally, and statewide.
5:35:18 PM
MR. MILLER remarked that for the future of Alaska, [Alaskans]
should be conscious of the competitive nature of the global
economy. He also emphasized the importance of imagination in
economic development.
5:38:35 PM
MR. MILLER informed the committee that in China, the under 18-
year-old population is greater than the U.S. and Great Britain
populations combined. Eighteen million people enter the
workforce each year in China. Approximately 450,000 engineers
graduated in China in 2004, and approximately 65,000 engineers
graduated in the U.S. in 2004. He commented that for Alaska to
remain competitive, it needs to develop its workforce. He noted
that China is the second largest English-speaking country in the
world and that there are 3 billion people living in the Pacific
Rim. He informed the committee that from 1978 to 2004, China's
Gross Domestic Product (GDP) grew from $147 billion to $1.6
trillion, with an average annual growth of 9.4 percent. He
added that China's GDP will surpass the U.S. in 2025-2035, and
become the world's largest. He stated that India's GDP has been
growing significantly, about twice as much as the U.S. Half of
India's population is under 25, about 500 million people.
Approximately 290,000 engineers graduate annually in India, and
India has 55 million cell phone users and 33 million Internet
users. He added that India will most likely surpass China in
population by 2050.
5:42:56 PM
MR. MILLER informed the committee that since the mid-1990s,
[Alaska] wages have decreased in comparison to the Lower 48.
He said that attracting people [to Alaska] and/or people
remaining [in Alaska] has been/is a problem. In regard to the
Baby Boom generation, he remarked that it's more pronounced in
Anchorage. In Fairbanks [the Baby Boom generation] is not as
pronounced because of the military and the University [of Alaska
Fairbanks] (UAF). He added that Juneau resembles much of rural
Alaska, with a lack of 20- to 35-year-olds. He stated that the
Anchorage/Matanuska-Susitna area is the lone region [in Alaska]
where the population is increasing. With the exception of
Juneau, Southeast Alaska has been decreasing in population.
5:44:56 PM
MR. MILLER discussed various JEDC programs. The JEDC has a
revolving loan fund, which in 2004 generated over $13 million in
sales revenue [throughout Southeast Alaska]. The JEDC also
counsels [over 120] clients. The JEDC created the Hoonah
incubator project, which was a retail store in the Icy Straits
development. [The project] was sold to locals and is one of few
locally owned stores in the development. He said that [JEDC]
completed a salmon by-product project [in 2005], and JEDC also
has a wood products specialist in Sitka who works statewide. He
added that [in 2005], the Ketchikan Wood Technology Center was
created and JEDC helped manage it.
5:45:54 PM
MR. MILLER informed the committee that JEDC had a limited
liability company (LLC) [in Icy Straits], which was taken over
by its employees. [The LLC] received an innovation award from
the National Association of Development of Organizations. He
explained that JEDC's $3 million loan fund is region wide and
for high-risk businesses. The JEDC partners with banks, while
taking the "more risky part of the deal." Some examples of [the
loan fund] are Icy Straits Lumber and the Inter-Island Ferry
Authority between Ketchikan and Hollis. He described the Wood
Products Development [Program], which does business with small
mill owners as well as lumber drying/kiln workshops throughout
the state. The JEDC has been working with the United States
Department of Agriculture (USDA), state and private forestry,
and the University [of Alaska] on valued-added lumber marketing
and development. He discussed the Ketchikan Wood Technology
Center, which conducts tests on the main lumber species in
Alaska in order to get higher value for [the main lumber
species].
5:48:02 PM
MR. MILLER informed the committee that JEDC has several partners
with which it works on collaborative projects. For example,
JEDC works with the Alaska Manufacturing Extension Partnership,
which is a nationwide program that has been privatized. It's
fee-based, one-third federal, one-third state, and one-third
private sector fees, with the goal of helping the manufacturing
sector grow. For every $1 dollar spent, the client must realize
$3 in new investment, as well as $3-$8 in new sales or cost
savings. The JEDC has been working with [the Alaska
Manufacturing Extension Partnership], to share clients, leverage
clients, and provide technical assistance. He stated that 10
percent of Alaska's gross state product is in overseas export.
In 2005, Alaska exported $3.5 billion worth of goods.
5:50:11 PM
MR. MILLER discussed a project entitled SpringBoard, which is a
partnership with the U.S. Department of Defense. The project
consists of technology transfer and commercialization. Triverus
LCC, which is based in Palmer, has created something similar to
a zamboni for an aircraft carrier. This zamboni re-circulates
high-pressure water without soap, is environmentally friendly,
cuts down on labor, and saves money. He remarked that [Triverus
LLC] has a Phase III Small Business Innovation Research (SBIR)
for $2.4 million.
5:51:30 PM
MR. MILLER mentioned a few other companies with which JEDC
works, such as PeopleMatter, Sequestered Solutions Alaska,
Inc., and Kachemak Research Development, Inc. He discussed a
project entitled the Knowledge Industry Network, a program that
addresses diversifying and growing the Alaska economy through
creativity and innovation, and creating a thriving environment
for students and young adults. He also discussed the cruise
ship industry in Juneau, which is an important component of
Juneau's economy as well as Alaska's economy. [In 2005], Juneau
had about 875,000 visitors.
5:54:17 PM
MR. MILLER related that one JEDC project focuses on the by-
product end of the fishing industry since 50 percent of fish are
not used for human consumption. In fact, a company in Juneau,
Alaska Protein Recovery, LLC, utilizes fish by-product and low-
value fish to make liquid fish protein. [Alaska Protein
Recovery, LLC] has invested over $5 million of private money
into [the company]. The product is being used for fertilizer,
animal feed, and there is potential for human consumption. He
commented that every agricultural industry has its pulp grade.
Pulp mills for lumber, orange juice, guacamole, and mixed nuts.
5:55:29 PM
CO-CHAIR NEUMAN, in regard to Alaska Protein Recovery, LLC's
salmon hydroslate, inquired as to whether it's the same group
that's working with salmon skin for medicinal purposes.
MR. MILLER replied no.
5:56:00 PM
MR. MILLER, in regard to mineral resources, informed the
committee that Greens Creek Mine is the largest silver producer
in North America and the largest private employer as well as the
largest taxpayer in Juneau. While [Greens Creek Mine] isn't
able to pay the types of royalties and/or doesn't have the
margins oil and gas does, [Green Creek Mine] is significant at
the local level. In regard to the mineral industry as a whole,
he remarked that the forecast for the future is looking good.
The industry should grow from current levels to about $3.4
billion by 2012. Furthermore, employment should respond in the
same manner with 5,000 employees in the industry by 2012.
5:58:22 PM
REPRESENTATIVE LYNN, in regard to the road into/out of Juneau,
opined that it would be a tremendous economic boom for Juneau,
and asked if Mr. Miller had any comments on it.
MR. MILLER said that anytime one is able to transfer goods,
services, people, and information more easily, it helps.
5:59:18 PM
CO-CHAIR NEUMAN inquired as to the role the Department of
Commerce, Community, & Economic Development (DCCED) and Alaska
Industrial Development and Export Authority (AIDEA) play in
helping the businesses discussed today.
MR. MILLER responded that JEDC works with DCCED on business
initiatives. As for AIDEA, it has been involved in many of the
developments. All the different organizations fit in the
state's development at different stages.
CO-CHAIR NEUMAN asked if Mr. Miller feels the State of Alaska is
doing a good job in assisting companies with developing
programs. He clarified that he was referring to economic
development opportunities.
6:00:52 PM
MR. MILLER opined that the state could do more for the
innovative businesses. One of JEDC's focuses has been on the
application of science and technology to Alaska businesses. He
added that there's a lot of opportunity to get more value from
the industries in the state by better use of technology,
innovation, and supporting companies.
6:03:04 PM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Economic Development, International Trade
and Tourism meeting was adjourned at 6:03 p.m.
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