Legislature(2019 - 2020)BARNES 124

03/09/2020 03:15 PM LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 235 AK WORKFORCE INVESTMENT BOARD:ALLOCATIONS TELECONFERENCED
Moved CSHB 235(L&C) Out of Committee
*+ HB 301 ELECTRICIAN & PLUMBER APPRENTICESHIPS TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+ SB 52 ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 93 MILITARY SPOUSE COURTESY LICENSE TELECONFERENCED
Moved CSHB 93(L&C) Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                         March 9, 2020                                                                                          
                           3:15 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Ivy Spohnholz, Chair                                                                                             
Representative Louise Stutes                                                                                                    
Representative Zack Fields                                                                                                      
Representative Sara Hannan                                                                                                      
Representative Andi Story                                                                                                       
Representative Mel Gillis                                                                                                       
Representative Sara Rasmussen                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 235                                                                                                              
"An  Act  relating  to  allocations of  funding  for  the  Alaska                                                               
Workforce  Investment  Board;  and  providing  for  an  effective                                                               
date."                                                                                                                          
                                                                                                                                
     - MOVED CSHB 235(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 93                                                                                                               
"An  Act  relating to  temporary  courtesy  licenses for  certain                                                               
nonresident  professionals; and  relating  to  the Department  of                                                               
Commerce, Community, and Economic Development."                                                                                 
                                                                                                                                
     - MOVED CSHB 93(L&C) OUT OF COMMITTEE                                                                                      
                                                                                                                                
HOUSE BILL NO. 301                                                                                                              
"An  Act relating  to certificates  of fitness  for plumbers  and                                                               
electricians."                                                                                                                  
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
CS FOR SENATE BILL NO. 52(FIN) AM                                                                                               
"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."                                                                                                                
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 235                                                                                                                  
SHORT TITLE: AK WORKFORCE INVESTMENT BOARD:ALLOCATIONS                                                                          
SPONSOR(s): REPRESENTATIVE(s) WOOL                                                                                              
                                                                                                                                
02/05/20       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/05/20       (H)       L&C, FIN                                                                                               
02/21/20       (H)       L&C AT 3:15 PM BARNES 124                                                                              
02/21/20       (H)       Heard & Held                                                                                           
02/21/20       (H)       MINUTE(L&C)                                                                                            
02/24/20       (H)       L&C AT 3:15 PM BARNES 124                                                                              
02/24/20       (H)       Heard & Held                                                                                           
02/24/20       (H)       MINUTE(L&C)                                                                                            
02/28/20       (H)       L&C AT 3:15 PM BARNES 124                                                                              
02/28/20       (H)       <Bill Hearing Canceled>                                                                                
03/02/20       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/02/20       (H)       <Bill Hearing Canceled>                                                                                
03/04/20       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/04/20       (H)       -- MEETING CANCELED --                                                                                 
03/09/20       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB  93                                                                                                                  
SHORT TITLE: MILITARY SPOUSE COURTESY LICENSE                                                                                   
SPONSOR(s): REPRESENTATIVE(s) TUCK                                                                                              
                                                                                                                                
03/13/19       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/13/19       (H)       MLV, L&C                                                                                               
04/02/19       (H)       MLV AT 1:00 PM GRUENBERG 120                                                                           
04/02/19       (H)       Heard & Held                                                                                           
04/02/19       (H)       MINUTE(MLV)                                                                                            
04/04/19       (H)       MLV AT 1:00 PM GRUENBERG 120                                                                           
04/04/19       (H)       -- MEETING CANCELED --                                                                                 
04/09/19       (H)       MLV AT 1:00 PM GRUENBERG 120                                                                           
04/09/19       (H)       -- MEETING CANCELED --                                                                                 
04/16/19       (H)       MLV AT 1:00 PM GRUENBERG 120                                                                           
04/16/19       (H)       Moved HB 93 Out of Committee                                                                           
04/16/19       (H)       MINUTE(MLV)                                                                                            
04/17/19       (H)       MLV RPT 6DP                                                                                            
04/17/19       (H)       DP: THOMPSON, RAUSCHER, TUCK, JACKSON,                                                                 
                         TARR, LEDOUX                                                                                           
05/06/19       (H)       L&C AT 3:15 PM BARNES 124                                                                              
05/06/19       (H)       -- MEETING CANCELED --                                                                                 
05/10/19       (H)       L&C AT 3:15 PM BARNES 124                                                                              
05/10/19       (H)       Heard & Held                                                                                           
05/10/19       (H)       MINUTE(L&C)                                                                                            
03/02/20       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/02/20       (H)       Heard & Held                                                                                           
03/02/20       (H)       MINUTE(L&C)                                                                                            
03/06/20       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/06/20       (H)       Heard & Held                                                                                           
03/06/20       (H)       MINUTE(L&C)                                                                                            
03/09/20       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 301                                                                                                                  
SHORT TITLE: ELECTRICIAN & PLUMBER APPRENTICESHIPS                                                                              
SPONSOR(s): REPRESENTATIVE(s) SHAW                                                                                              
                                                                                                                                
02/24/20       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/24/20       (H)       L&C                                                                                                    
03/09/20       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: SB  52                                                                                                                  
SHORT TITLE: ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG                                                                            
SPONSOR(s): SENATOR(s) MICCICHE                                                                                                 
                                                                                                                                
02/11/19       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/11/19       (S)       L&C, JUD, FIN                                                                                          
03/26/19       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/26/19       (S)       Heard & Held                                                                                           
03/26/19       (S)       MINUTE(L&C)                                                                                            
03/28/19       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/28/19       (S)       Heard & Held                                                                                           
03/28/19       (S)       MINUTE(L&C)                                                                                            
04/02/19       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/02/19       (S)       Heard & Held                                                                                           
04/02/19       (S)       MINUTE(L&C)                                                                                            
04/04/19       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/04/19       (S)       -- MEETING CANCELED --                                                                                 
04/09/19       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/09/19       (S)       Heard & Held                                                                                           
04/09/19       (S)       MINUTE(L&C)                                                                                            
04/11/19       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/11/19       (S)       Heard & Held                                                                                           
04/11/19       (S)       MINUTE(L&C)                                                                                            
04/16/19       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/16/19       (S)       Moved CSSB 52(L&C) Out of Committee                                                                    
04/16/19       (S)       MINUTE(L&C)                                                                                            
04/17/19       (S)       L&C RPT CS FORTHCOMING 4DP                                                                             
04/17/19       (S)       DP: REINBOLD, COSTELLO, BIRCH, BISHOP                                                                  
04/17/19       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/17/19       (S)       -- MEETING CANCELED --                                                                                 
04/17/19       (S)       JUD AT 6:00 PM BELTZ 105 (TSBldg)                                                                      
04/17/19       (S)       -- MEETING CANCELED --                                                                                 
04/19/19       (S)       L&C CS RECEIVED SAME TITLE                                                                             
04/22/19       (S)       JUD AT 6:00 PM BELTZ 105 (TSBldg)                                                                      
04/22/19       (S)       Heard & Held                                                                                           
04/22/19       (S)       MINUTE(JUD)                                                                                            
04/23/19       (S)       JUD AT 6:00 PM BELTZ 105 (TSBldg)                                                                      
04/23/19       (S)       Heard & Held                                                                                           
04/23/19       (S)       MINUTE(JUD)                                                                                            
04/24/19       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/24/19       (S)       Heard & Held                                                                                           
04/24/19       (S)       MINUTE(JUD)                                                                                            
04/26/19       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/26/19       (S)       Moved CSSB 52(JUD) Out of Committee                                                                    
04/26/19       (S)       MINUTE(JUD)                                                                                            
04/29/19       (S)       JUD RPT CS  2DP 1AM SAME TITLE                                                                         
04/29/19       (S)       DP: HUGHES, MICCICHE                                                                                   
04/29/19       (S)       AM: KIEHL                                                                                              
02/11/20       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
02/11/20       (S)       Heard & Held                                                                                           
02/11/20       (S)       MINUTE(FIN)                                                                                            
02/19/20       (S)       FIN RPT CS FORTHCOMING 2DP 2NR 1AM                                                                     
02/19/20       (S)       DP: VON IMHOF, BISHOP                                                                                  
02/19/20       (S)       NR: WIELECHOWSKI, HOFFMAN                                                                              
02/19/20       (S)       AM: WILSON                                                                                             
02/19/20       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
02/19/20       (S)       Moved CSSB 52(FIN) Out of Committee                                                                    
02/19/20       (S)       MINUTE(FIN)                                                                                            
02/21/20       (S)       FIN CS RECIEVED                  SAME                                                                  
                         TITLE                                                                                                  
02/26/20       (S)       TRANSMITTED TO (H)                                                                                     
02/26/20       (S)       VERSION: CSSB 52(FIN) AM                                                                               
02/28/20       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/28/20       (H)       L&C, FIN                                                                                               
03/09/20       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
ASHLEY CARRICK, Staff                                                                                                           
Representative Adam Wool                                                                                                        
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Provided the  opening statement for  HB 235                                                             
and answered  questions, on behalf of  Representative Wool, prime                                                               
sponsor.                                                                                                                        
                                                                                                                                
TED MADSEN, Staff                                                                                                               
Representative Ivy Spohnholz                                                                                                    
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:    Explained  the changes  in  the  proposed                                                             
committee substitute  (CS) for  HB 235, Version  M, on  behalf of                                                               
Chair Spohnholz.                                                                                                                
                                                                                                                                
MATT GRUENING, Staff                                                                                                            
Representative Louise Stutes                                                                                                    
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Provided information on  the Kodiak Seafood                                                             
and  Marine Science  Center  during  the hearing  on  HB 235,  on                                                               
behalf of Representative Stutes.                                                                                                
                                                                                                                                
LENNON WELLER, Economist/UI Actuary                                                                                             
Department of Labor & Workforce Development                                                                                     
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions  during the hearing on HB
235.                                                                                                                            
                                                                                                                                
REPRESENTATIVE CHRIS TUCK                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   As  prime  sponsor,  provided the  opening                                                             
statement for HB 93.                                                                                                            
                                                                                                                                
REPRESENTATIVE GABRIELLE LEDOUX                                                                                                 
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  As prime sponsor, introduced HB 301.                                                                     
                                                                                                                                
DEBORAH KELLY, Director                                                                                                         
National  Electrical  Contractors   Association  &  International                                                               
Brotherhood of Electrical Workers Apprenticeship Program                                                                        
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of the CSHB 301.                                                                    
                                                                                                                                
DAVE MCALLEN, CEO                                                                                                               
The Superior Group Inc.                                                                                                         
National Electrical Contractors Association                                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 301.                                                                          
                                                                                                                                
SENATOR PETER MICCICHE                                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  As prime sponsor, introduced SB 52.                                                                      
                                                                                                                                
ANNA BRAWLEY, Staff                                                                                                             
Senator Peter Micciche                                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION   STATEMENT:     Provided  a   PowerPoint  presentation,                                                             
entitled  "Alcohol Beverage  Control (ABC)  Board Title  4 Review                                                               
Project,"  on  behalf of  Senator  Micciche,  prime sponsor,  and                                                               
answered questions from the committee.                                                                                          
                                                                                                                                
MELISSA WALTER, Administrative Officer                                                                                          
Alcohol & Marijuana Control Office                                                                                              
Department of Commerce, Community & Economic Development                                                                        
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions  during the hearing on SB
52.                                                                                                                             
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:15:21 PM                                                                                                                    
                                                                                                                              
CHAIR IVY SPOHNHOLZ called the  House Labor and Commerce Standing                                                             
Committee meeting to  order at 3:15 p.m.   Representatives Story,                                                               
Stutes,  Fields, Gillis,  Hannan, and  Spohnholz were  present at                                                               
the  call to  order.   Representative  Rasmussen  arrived as  the                                                               
meeting was in progress.                                                                                                        
                                                                                                                                
        HB 235-AK WORKFORCE INVESTMENT BOARD:ALLOCATIONS                                                                    
                                                                                                                                
3:16:17 PM                                                                                                                    
                                                                                                                                
CHAIR SPOHNHOLZ announced that the  first order of business would                                                               
be  HOUSE  BILL NO.  235,  "An  Act  relating to  allocations  of                                                               
funding for the Alaska Workforce  Investment Board; and providing                                                               
for an effective date."                                                                                                         
                                                                                                                                
3:16:34 PM                                                                                                                    
                                                                                                                                
ASHLEY  CARRICK, Staff,  Representative Adam  Wool, Alaska  State                                                               
Legislature,  on behalf  of Representative  Wool, prime  sponsor,                                                               
provided  a  summary  of  HB  235.     She  stated  that  HB  235                                                               
reauthorizes  the Technical  Vocational Education  Program (TVEP)                                                               
for three  years to  2023.  This  program provides  technical and                                                               
vocational training  across the  state to various  recipients and                                                               
has been in place since 2000.                                                                                                   
                                                                                                                                
3:17:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES  moved  to adopt  the  proposed  committee                                                               
substitute (CS)  for HB 235, labeled  31-LS1480\M, Wayne, 3/6/20,                                                               
as the working document.                                                                                                        
                                                                                                                                
3:17:37 PM                                                                                                                    
                                                                                                                                
CHAIR SPOHNHOLZ objected for the purpose of discussion.                                                                         
                                                                                                                                
3:17:47 PM                                                                                                                    
                                                                                                                                
TED  MADSEN, Staff,  Representative Ivy  Spohnholz, Alaska  State                                                               
Legislature, on behalf of Chair  Spohnholz, explained the changes                                                               
to HB 235  proposed under the committee  substitute (CS), Version                                                               
M.   He paraphrased from  the document, entitled   Explanation of                                                               
Changes  Version  A to  Version  M   [included in  the  committee                                                               
packet],  which  read  in  its   entirety  as  follows  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     The   proposed   committee   substitute   makes   three                                                                    
     substantive changes to the original  A version of House                                                                    
     Bill 235:                                                                                                                  
                                                                                                                                
     ? In Section  1, it changes the  TVEP contribution rate                                                                    
     from  .16 to  .18  percent. This  adds  to the  overall                                                                    
     available pool of  TVEP funds. This change  is found on                                                                    
     page 1, line 7 of version M.                                                                                               
                                                                                                                                
     ?  In  Section  2,  it   extends  the  sunset  date  an                                                                    
     additional  2 years.  The program  would now  sunset on                                                                    
     June 30,  2025, rather than  2023 as proposed in  the A                                                                    
     version. This  change is  found on page  1, line  13 of                                                                    
     the M version.                                                                                                             
                                                                                                                                
     ? In Section  2, the M version proposes to  add one new                                                                    
     allocation at  1.925% to the Kodiak  Seafood and Marine                                                                    
     Science Center.  This change is  found on page  2, line                                                                    
     13.                                                                                                                        
                                                                                                                                
          o Allocations for other institutions, aside from                                                                      
     the  University  of  Alaska,  are  slightly  decreased.                                                                    
     These changed  allocations are found  on page  2, lines                                                                    
     4-12.                                                                                                                      
                                                                                                                                
          o While allocations for most existing statutorily                                                                     
     designated institutions are reduced  by 3.5% from their                                                                    
     current statutory  amount, the change to  the TVEP rate                                                                    
     found in  Section 1 allows  each institution to  see an                                                                    
     increase  in  overall  funds  disbursed.  See  attached                                                                    
     Table #1.                                                                                                                  
                                                                                                                                
          o Section 3 adds a new subsection to AS                                                                               
     23.15.835.  This new  subsection (i)  directs that  the                                                                    
     University of Alaska administer  the funds allocated to                                                                    
     the  Kodiak  Seafood  and  Marine  Science  Center  for                                                                    
     programing and capital  improvements consistent with AS                                                                    
     16.52.020. AS  16.52.020 spells out  the duties  of the                                                                    
     Kodiak Seafood  and Marine Science Center.  This change                                                                    
     is found on page 2, lines 14-18.                                                                                           
                                                                                                                                
     There is one additional change  to the A version in the                                                                    
     retroactivity clause  (section 4). All sections  of the                                                                    
     bill, including  the newly proposed changes  in Section                                                                    
     1 and  Section 2,  and the added  Section 3,  will take                                                                    
     effect retroactively  if the bill does  not take effect                                                                    
     by June 30, 2020.                                                                                                          
                                                                                                                                
3:20:11 PM                                                                                                                    
                                                                                                                                
MATT GRUENING, Staff, Representative  Louise Stutes, Alaska State                                                               
Legislature, on  behalf of  Representative Stutes,  discussed the                                                               
Kodiak Seafood and Marine Science  Center (KSMSC).  The KSMSC was                                                               
established  under  the  University  of  Alaska  (UA)  under  the                                                               
College  of  Fisheries   and  Ocean  Sciences  in   1981  by  the                                                               
legislature  through  Title  16   [Fish  and  Game],  Chapter  52                                                               
[Fishery Industrial Technology Center],  AS 16.52.010-070, as the                                                               
Fisheries Industrial Technology  Center.  It is  the states  only                                                               
seafood pilot  plant.  The  KSMSC mission under AS  15.52.020, is                                                               
to  support employment  opportunities and  other benefits  to the                                                               
state and  the seafood industry  through training,  research, and                                                               
industry  collaboration.   He  provided a  short  history of  the                                                               
center  and  directed  attention to  an  informational  document,                                                               
entitled   About  Kodiak  Seafood   and  Marine  Science  Center                                                                
[included  in  the committee  packet].    He said  that  Alaskas                                                                
seafood industry is the states   single largest private employer;                                                               
however,   the  processing   industry   receives  little   annual                                                               
dedicated  funding.     He  explained  that   seafood  processing                                                               
employees contribute  a significant amount  of funds to  the TVEP                                                               
each year.   From fiscal  year 2016 (FY  16) to FY  18 processing                                                               
workers  contributed an  average of  $607,000 to  the fund  while                                                               
only  averaging $64,000  per year  from FY  14 to  FY 20  in TVEP                                                               
funding, which  is approximately 1.2 percent  of the universitys                                                                
TVEP allocation.  He stated  that while the university and Alaska                                                               
Vocational Technical  Center (AVTEC) have increased  a percentage                                                               
of their  TVEP funds focused  on fisheries and  maritime training                                                               
over the  last few years,  very little funding has  been targeted                                                               
to the seafood industry workforce directly.                                                                                     
                                                                                                                                
MR.  GRUENING  noted that  the  industry  has clearly  identified                                                               
training   needs  and   desires  through   the  Alaska   Research                                                               
Consortium survey  [included in the committee  packet], which was                                                               
provided  for by  a federal  Economic Development  Administration                                                               
grant to  identify the  statewide needs.   He reported  that over                                                               
25,000 seafood workers contribute to  the TVEP fund annually.  He                                                               
said  with  the legislative  mandate  for  the  KSMSC yet  to  be                                                               
realized,  this  reauthorization  represents  an  opportunity  to                                                               
reinvest  in  Alaskas   seafood  industry  with  funds  that  are                                                               
generated from  that industry.   He further  noted that  doing so                                                               
will help  contribute to statewide employment  opportunities, the                                                               
value of Alaskas   seafood, and the long-term  economic health of                                                               
the state.  He added that this  would not result in a decrease to                                                               
shares.     Furthermore,  there  are  letters   of  support  from                                                               
organizations  [included in  the committee  packet], such  as the                                                               
Pacific  Seafood   Processors  Association  (PSPA);   the  Alaska                                                               
Seafood Marketing Institute (ASMI);  North Pacific Seafoods, Inc.                                                               
(NPSI); the Alaska Research Consortium (ARC); and others.                                                                       
                                                                                                                                
CHAIR  SPOHNHOLZ asked  for the  bill sponsors   position on  the                                                               
proposed CS.                                                                                                                    
                                                                                                                                
3:25:12 PM                                                                                                                    
                                                                                                                                
MS.  CARRICK explained  that Version  M  represents a  compromise                                                               
between Representative  Wool, prime sponsor, and  the House Labor                                                               
and Commerce  Standing Committee.   She said  Representative Wool                                                               
would like to express his acceptance of the proposed CS.                                                                        
                                                                                                                                
3:25:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STORY  expressed her  concern about  extending the                                                               
reauthorization  period from  three  years to  five  years.   She                                                               
pointed out  that HB  235 concerns  contributions to  the states                                                                
technical and  vocational education programs, adding  that Alaska                                                               
has made strides in offering those.   She offered her belief that                                                               
a three-year  sunset would  better allow  for the  opportunity to                                                               
readjust  if  necessary.   She  asked  how input  -  specifically                                                               
regarding industry  trends - would  be incorporated  and received                                                               
with a five-year authorization period.                                                                                          
                                                                                                                                
MS.  CARRICK explained  that recipients  prefer the  stability of                                                               
knowing that they will receive  funding.  She said all recipients                                                               
that were asked unanimously  preferred the 5-year reauthorization                                                               
period compared to the option of three years.                                                                                   
                                                                                                                                
REPRESENTATIVE STORY opined that three years is certainty.                                                                      
                                                                                                                                
CHAIR  SPOHNHOLZ asked  Representative  Story if  she intends  on                                                               
offering an amendment today or if she is objecting to the CS.                                                                   
                                                                                                                                
REPRESENTATIVE  STORY expressed  her hope  that the  bill sponsor                                                               
would withdraw the five-year sunset.                                                                                            
                                                                                                                                
CHAIR  SPOHNHOLZ pointed  out that  currently, its   part of  the                                                               
proposed  CS.   She  explained  that  Representative Story  could                                                               
offer  a  conceptual  amendment  to  the CS  if  Version  M  were                                                               
adopted.                                                                                                                        
                                                                                                                                
3:30:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS expressed  his support  for the  stability                                                               
that   a  five-year   window  lends   the   recipients  and   the                                                               
institutions.   He  offered his  belief that  between the  annual                                                               
TVEP report  and the  ability that  legislators have  to interact                                                               
with  those institutions  there will  be an  opportunity to  make                                                               
suggestions or intervene if necessary.                                                                                          
                                                                                                                                
3:31:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RASMUSSEN  asked  if the  increased  contribution                                                               
rate is .02 percent of every Alaska workers paycheck.                                                                           
                                                                                                                                
CHAIR  SPOHNHOLZ  clarified  that  it   is  not  an  increase  on                                                               
withholdings  from workers   paychecks.   She explained  that the                                                               
fund was overcapitalized, leaving  enough money to withstand this                                                               
additional increase.   She  said they are  putting that  money to                                                               
good use.                                                                                                                       
                                                                                                                                
REPRESENTATIVE RASMUSSEN questioned whether  there is enough of a                                                               
surplus to cover five years instead of three.                                                                                   
                                                                                                                                
CHAIR SPOHNHOLZ answered yes.                                                                                                   
                                                                                                                                
3:32:29 PM                                                                                                                    
                                                                                                                                
LENNON  WELLER,  Economist/UI  Actuary,  Department  of  Labor  &                                                               
Workforce Development, explained  that the unemployment insurance                                                               
trust fund  has currently  found itself  in an  enviable position                                                               
with substantial  reserves.   Currently, there  is nearly  half a                                                               
billion in  the fund, which  is roughly 80 million  dollars above                                                               
the  ideal position  to meet  the majority  of potential  benefit                                                               
costs.   Regarding  reserve  ratios, he  said,  the fund  targets                                                               
between 3-3.3  percent of  wages at any  given time.   Currently,                                                               
there is  over 3.8 percent, which  means .5 percent of  wages are                                                               
above their own statutory targets.                                                                                              
                                                                                                                                
CHAIR SPOHNHOLZ noted  that there is over 500  million dollars of                                                               
overcapitalized  in the  fund and  the proposed  CS budgets  1.68                                                               
million dollars additional per year.                                                                                            
                                                                                                                                
MR. WELLER affirmed  that.  He restated that the  fund has nearly                                                               
500 million dollars  in it, adding that  they are overcapitalized                                                               
by roughly  80 million dollars.   He said based on  the statutory                                                               
and historical targets, taking an  additional 1.6 million dollars                                                               
from the fund would not be detrimental.                                                                                         
                                                                                                                                
3:34:59 PM                                                                                                                    
                                                                                                                                
CHAIR SPOHNHOLZ  removed her objection.   There being  no further                                                               
objection, Version M was adopted as the working draft.                                                                          
                                                                                                                                
3:35:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STORY expressed  her  hope that  the next  annual                                                               
report will show  trends in enrollment in the  various career and                                                               
technical  programs and  that any  necessary adjustments  will be                                                               
considered.                                                                                                                     
                                                                                                                                
3:36:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RASMUSSEN  agreed with Representative Story.   She                                                               
moved Conceptual  Amendment 1, which would  replace the five-year                                                               
reauthorization with a three-year reauthorization.                                                                              
                                                                                                                                
CHAIR  SPOHNHOLZ  objected  to   Conceptual  Amendment  1.    She                                                               
maintained  that  the majority  of  TVEP  recipients prefer  more                                                               
stability in funding.                                                                                                           
                                                                                                                                
3:37:35 PM                                                                                                                    
                                                                                                                                
MS. CARRICK reiterated that after  speaking with over half of the                                                               
TVEP recipients,  she is certain  that they unanimously  prefer a                                                               
five-year reauthorization.                                                                                                      
                                                                                                                                
3:38:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN  expressed her  opposition to  a three-year                                                               
reauthorization.    She  opined  that   a  three-year  window  to                                                               
reauthorize  the program  is  a short  window  to accomplish  any                                                               
planning.  She  said five years is not too  long, and any program                                                               
that is not meeting its labor  needs may have already shifted and                                                               
changed after five  years.  She stated that five  years is a good                                                               
planning window.                                                                                                                
                                                                                                                                
3:39:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS  noted  that NACTEC,  for  example,  works                                                               
closely with  the local  school district,  so in  considering the                                                               
timeframe  one must  also take  into account  the actions  of the                                                               
school board and, in turn, the  employers.  He said five years is                                                               
not a long time to implement a change, analyze, and assess it.                                                                  
                                                                                                                                
3:40:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RASMUSSEN  asserted that she doesnt   want this to                                                               
be  perceived as  an attack  on the  importance of  this program.                                                               
She  said there  may  be adjustments  and  additional needs  that                                                               
arise, which  is the  reason she is  advocating for  a three-year                                                               
reauthorization.                                                                                                                
                                                                                                                                
A roll  call vote was  taken.  Representatives  Rasmussen, Story,                                                               
and   Gillis  voted   in  favor   of   Conceptual  Amendment   1.                                                               
Representatives  Fields,  Stutes,  Hannan,  and  Spohnholz  voted                                                               
against it.   Therefore, Conceptual  Amendment 1 failed by  to be                                                               
adopted by a vote of 3-4.                                                                                                       
                                                                                                                                
CHAIR SPOHNHOLZ articulated that an  important part of crafting a                                                               
compromise is  to make  sure that everyone  wins.   She expressed                                                               
her hope  that CSHB  235 is  now moving  from the  committee with                                                               
that standpoint.   She said  a new  beneficiary was added  to the                                                               
TVEP,  which   helps  to   support  Alaskas    fishing  industry;                                                               
furthermore,  every  beneficiary  came out  with  more  financing                                                               
without  jeopardizing the  fund source  or the  stability of  the                                                               
state.  She shared her belief that this is a win.                                                                               
                                                                                                                                
3:42:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES   moved  to   report  CSHB   235,  Version                                                               
LS1480\M,  Wayne,  3/6/20,  out   of  committee  with  individual                                                               
recommendations  and  the  accompanying fiscal  notes.    Without                                                               
objection,  CSHB 235(L&C)  was  moved from  the  House Labor  and                                                               
Commerce Standing Committee.                                                                                                    
                                                                                                                                
3:43:17 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:43 to 3:46 p.m.                                                                            
                                                                                                                                
            HB  93-MILITARY SPOUSE COURTESY LICENSE                                                                         
                                                                                                                                
3:46:00 PM                                                                                                                    
                                                                                                                                
CHAIR SPOHNHOLZ announced  that the next order  of business would                                                               
be  HOUSE BILL  NO. 93,  "An Act  relating to  temporary courtesy                                                               
licenses for  certain nonresident professionals; and  relating to                                                               
the   Department    of   Commerce,   Community,    and   Economic                                                               
Development."                                                                                                                   
                                                                                                                                
3:46:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CHRIS TUCK,  Alaska State  Legislature, as  prime                                                               
sponsor, provided a  brief summary of HB 93.   The bill, he said,                                                               
implements  a reporting  requirement in  an attempt  to help  the                                                               
military spouses transition into  Alaskas  workplace by assessing                                                               
their occupational licenses and issuing temporary licenses.                                                                     
                                                                                                                                
3:46:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN  moved to  adopt Amendment 1,  [labeled 31-                                                               
LS0670\M.1, Fisher, 3/6/20], which read:                                                                                        
                                                                                                                                
     Page 1, following line 12:                                                                                                 
          Insert a new paragraph to read:                                                                                       
           "(3) the number and type of licenses that                                                                            
     have been applied for,"                                                                                                    
                                                                                                                                
     Renumber the following paragraphs accordingly.                                                                             
                                                                                                                                
CHAIR SPOHNHOLZ objected for the purpose of discussion.                                                                         
                                                                                                                                
3:46:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN  stated that  Amendment 1  would add  a new                                                               
paragraph (3)  on Page 1, Line  12, that states,  the  number and                                                               
type of licenses that have been applied for.                                                                                    
                                                                                                                                
3:47:48 PM                                                                                                                    
                                                                                                                                
CHAIR TUCK said this adds clarity to  the bill.  He added that if                                                               
the only  thing known is the  licenses that are issued,  its  not                                                               
clear if they are on track or not.                                                                                              
                                                                                                                                
CHAIR SPOHNHOLZ  removed her objection.   There being  no further                                                               
objection, Amendment 1 was adopted.                                                                                             
                                                                                                                                
3:48:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES moved  to report HB 93, as  amended, out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal notes.   Without  objection, CSHB  93(L&C) was  moved from                                                               
the House Labor and Commerce Standing Committee.                                                                                
                                                                                                                                
3:48:49 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:48 to 3:51 p.m.                                                                            
                                                                                                                                
          HB 301-ELECTRICIAN & PLUMBER APPRENTICESHIPS                                                                      
                                                                                                                                
3:51:50 PM                                                                                                                    
                                                                                                                                
CHAIR SPOHNHOLZ announced  that the next order  of business would                                                               
be  HOUSE BILL  NO.  301,  "An Act  relating  to certificates  of                                                               
fitness for plumbers and electricians."                                                                                         
                                                                                                                                
3:52:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES  moved  to adopt  the  proposed  committee                                                               
substitute  (CS), labeled  31-LS1506\E,  Fisher,  3/6/20, as  the                                                               
working document.                                                                                                               
                                                                                                                                
CHAIR SPOHNHOLZ objected for the purpose of discussion.                                                                         
                                                                                                                                
3:52:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GABRIELLE LEDOUX,  Alaska  State Legislature,  as                                                               
prime  sponsor, provided  a brief  explanation  of HB  301.   She                                                               
stated that  Alaska has a great  apprenticeship program; however,                                                               
there are  regulations that have  been proposed that  would  gut                                                                
it.   Essentially,  she said,  HB  301 would  codify the  current                                                               
regulations  regarding   apprenticeship  programs  so   that  the                                                               
changes  promulgated  by the  administration  would  not go  into                                                               
effect.                                                                                                                         
                                                                                                                                
3:53:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS  reported  that   they  heard  375  public                                                               
comments in opposition  to the proposed regulations  and in favor                                                               
of  the status  quo.   He  said the  proposed  CS maintains  that                                                               
status quo to provide certainty for the industry.                                                                               
                                                                                                                                
CHAIR SPOHNHOLZ  removed her objection.   There being  no further                                                               
objection, Version E was adopted as the working document.                                                                       
                                                                                                                                
3:54:42 PM                                                                                                                    
                                                                                                                                
DEBORAH   KELLY,   Director,  National   Electrical   Contractors                                                               
Association  & International  Brotherhood  of Electrical  Workers                                                               
Apprenticeship  Program,  stated that  she  is  in favor  of  the                                                               
committee substitute  (CS) for HB 301.   She said there  are only                                                               
two  building trades  in Alaska  that require  licenses: plumbers                                                               
and electrical workers.  She added  that there is good reason for                                                               
licensing  these trades.    The work  performed  by plumbers  and                                                               
electrical  workers  is  complex   and  must  be  done  properly;                                                               
however,  once its   completed, its   often hidden  behind walls,                                                               
floors,  and  ceilings.   Consequently,  the  state  has  several                                                               
overlapping inspections  to ensure  that plumbing  and electrical                                                               
installations  are safe  for  the  public: administers  licenses,                                                               
state conducted inspections, and  certificates of fitness.  These                                                               
licenses ensure that workers know  what theyre  doing before they                                                               
work  alone.    She  explained   that  this  is  accomplished  by                                                               
requiring that trainees  are in an apprenticeship    the industry                                                               
standard for  building competency.  She  said each apprenticeship                                                               
may be  somewhat different,  but they all  follow the  same basic                                                               
standards and expectations for training  and experience to create                                                               
a qualified person.   She explained that the  Department of Labor                                                               
&  Workforce  Development  (DLWD) recently  proposed  regulations                                                               
that  would remove  this apprenticeship  requirement, effectively                                                               
stripping away  all training  and relevant  experience requisites                                                               
for these  trades.   She offered  her belief  that it  would have                                                               
created   economic   advantages    for   businesses   not   using                                                               
apprenticeships  and  allowed  employers  to  hire  out-of-state,                                                               
seasonal,  low  wage  labor  instead  of  investing  in  Alaskas                                                                
workforce.  She  noted that stakeholders were  not consulted, and                                                               
the proposal  included several provisions  that showed a  lack of                                                               
understanding of the  realities in the field.  HB  301, she said,                                                               
will prevent  the department from  turning trainee  licenses into                                                               
nothing  more than  a  ransom paid  to work  in  the plumbing  or                                                               
electrical  trade.     This  bill  will  help   ensure  that  the                                                               
department respects the statutory intent  for public safety.  She                                                               
urged the passage of CSHB 301.                                                                                                  
                                                                                                                                
3:59:25 PM                                                                                                                    
                                                                                                                                
DAVE MCALLEN,  CEO, The Superior Group  Inc.; National Electrical                                                               
Contractors  Association, expressed  his  hope  to offer  insight                                                               
from a contractor's perspective.   He informed the committee that                                                               
he is the  chief operations officer for The  Superior Group Inc.,                                                               
which is an employee-owned,  Alaska-based contractor that employs                                                               
both electrical workers,  plumbers, and pipefitters.   HB 301, he                                                               
said, will  have a  direct impact  on their  business operations.                                                               
He  stated that  he  is also  the vice  president  of the  Alaska                                                               
chapter  of  the   National  Electrical  Contractors  Association                                                               
(NECA).   He  said  that  as an  employer  utilizing a  workforce                                                               
heavily   comprised    of   skilled    tradespeople,   registered                                                               
apprenticeship is  an important  tool in  hiring and  vetting the                                                               
workforce.    A  standardized  means  of  identifying  experience                                                               
levels  and verifiable  skillsets is  critical in  developing and                                                               
qualifying his crews.  He said  that his tradespeople can work in                                                               
high-risk environments and  it is imperative that  the product is                                                               
completed in a safe and code-compliant  manner.  He said that his                                                               
business   appreciates   and    leans   heavily   on   registered                                                               
apprenticeship   and  the   associated  licensing   requirements.                                                               
Without  it,  it  would  be  difficult  to  effectively  evaluate                                                               
employees and ensure that theyre   being placed in an appropriate                                                               
role.   It  is  important for  both the  personal  safety of  the                                                               
employee and  for the general  public that inhabits  the property                                                               
on  which  they  worked.   Furthermore,  in  todays   competitive                                                               
market, the  lower scale  apprentice is  a factor  in determining                                                               
competitive  bids  and there  is  an  expectation that  they  are                                                               
working on the installation, not  simply observing the journeyman                                                               
doing the  install.  Consequently,  he said  that he sees  a very                                                               
real need for that individual to be  licensed to do the work.  He                                                               
stated  that  apprenticeship and  licensing  work  well in  their                                                               
current form.   Furthermore, he surmised that it is  the best and                                                               
most cost-effective  means of developing  a local workforce.   To                                                               
conclude, he  stated his support for  HB 301 and for  codifying a                                                               
system that is currently working.                                                                                               
                                                                                                                                
CHAIR SPOHNHOLZ announced that HB 301 was held over.                                                                            
                                                                                                                                
         SB  52-ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG                                                                     
                                                                                                                                
4:04:17 PM                                                                                                                    
                                                                                                                                
CHAIR SPOHNHOLZ announced that the  final order of business would                                                               
be  CS FOR  SENATE  BILL  NO. 52(FIN)  am,  "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."                                                                                                                          
                                                                                                                                
4:04:32 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 4:04 to 4:06 p.m.                                                                            
                                                                                                                                
4:06:01 PM                                                                                                                    
                                                                                                                                
SENATOR  PETER  MICCICHE,  Alaska  State  Legislature,  as  prime                                                               
sponsor, introduced SB 52.   He reported that alcohol remains the                                                               
top abused  substance in  Alaska; however,  for those  that drink                                                               
responsibly, the  industry is also  an important  economic driver                                                               
throughout the state.   He said this bill has  been an eight-year                                                               
effort involving 13,000 hours of  work and input from 120 primary                                                               
stakeholders, as well as from  the legislature.  He recounted the                                                               
legislation's previous  unanimous passage  from the Senate  in SB
76, which  died in the  House Finance Committee thereafter.   The                                                               
current  version, CSSB  52(FIN) am,  also unanimously  passed the                                                               
Senate.   He  stated  that  the bill's  primary  focus is  public                                                               
health  and  safety,  adding  that   the  industry,  the  Alcohol                                                               
Beverage  Control (ABC)  Board, the  Alcohol &  Marijuana Control                                                               
Office  (AMCO),  the  legislature,   and  the  public  were  also                                                               
included.   The  goals, he  said, are  promoting a  fair business                                                               
climate; protection  of public health and  safety; limiting youth                                                               
access  to alcohol;  promoting responsible  use and  reducing the                                                               
harms of overconsumption;  implementing change without negatively                                                               
harming  existing  businesses   and  responsible  operators;  and                                                               
expanding  local control  for  municipalities.   SB  52 is  about                                                               
balance,  reorganization,  and fairness,  he  said.   He  further                                                               
noted that although the bill is  dense, about 90 percent of it is                                                               
reorganization  of  existing law.    He  said it  modernizes  the                                                               
state's  35-year-old  patchwork  of statutes  into  a  modernized                                                               
framework for today's industry.                                                                                                 
                                                                                                                                
4:09:13 PM                                                                                                                    
                                                                                                                                
ANNA  BRAWLEY,  Staff,  Senator   Peter  Micciche,  Alaska  State                                                               
Legislature,  informed  the  committee   that  she  is  a  senior                                                               
associate at Agnew::Beck Consulting and  that [the firm] has been                                                               
involved in  this process since the  first meeting in 2012.   She                                                               
proceeded   to  provide   a  PowerPoint   presentation,  entitled                                                               
"Alcohol Beverage Control (ABC) Board  Title 4 Review,  on behalf                                                               
of Senator Micciche,  prime sponsor.  She stated  that each state                                                               
is responsible for  regulating alcohol manufacture, distribution,                                                               
and sales in its jurisdiction  since the repeal of prohibition in                                                               
1933.   The purpose  of alcohol  control laws  is to  balance the                                                               
interests  of the  industry  with the  public  health and  safety                                                               
concerns about alcohol misuse (slide 2).                                                                                        
                                                                                                                                
4:10:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES  sought  clarification   on  the  type  of                                                               
consulting provided by Agnew::Beck Consulting.                                                                                  
                                                                                                                                
MS.  BRAWLEY stated  that they  provide many  different services,                                                               
including community planning, public health, and public policy.                                                                 
                                                                                                                                
4:11:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS  questioned whether  Agnew::Beck Consulting                                                               
has  a history  of working  with the  Alaska Mental  Health Trust                                                               
Authority on issues of public  safety related to substance misuse                                                               
and addiction.                                                                                                                  
                                                                                                                                
MS. BRAWLEY confirmed that.                                                                                                     
                                                                                                                                
4:11:45 PM                                                                                                                    
                                                                                                                                
MS. BRAWLEY  resumed her presentation.   She said the  purpose of                                                               
the Title 4 project has been  to consider the statutes as a whole                                                               
and to  make them  work better  for everyone.   She  restated the                                                               
goals - all  aimed towards promoting a fair  business climate and                                                               
protecting public health and safety, as  well as making Title 4 a                                                               
clear and consistent legal framework (slide 5).                                                                                 
                                                                                                                                
CHAIR  SPOHNHOLZ inquired  as  to the  original  impetus for  the                                                               
entire Title 4 rewrite process.                                                                                                 
                                                                                                                                
MS. BRAWLEY explained  that the process was initiated  by the ABC                                                               
Board  in 2012.   The  board members  spearheaded the  effort and                                                               
brought different  stakeholders together.   She  said originally,                                                               
it  was a  one-day meeting  where  they figured  out the  biggest                                                               
issues that  needed to be  addressed.  They  formed subcommittees                                                               
and for  several years,  the process was  funded by  the Rasmuson                                                               
Foundation,  the  Alaska  Mental   Health  Trust  Authority,  and                                                               
Recover   Alaska,  which   started  as   an  initiative   by  the                                                               
aforementioned groups.                                                                                                          
                                                                                                                                
4:13:27 PM                                                                                                                    
                                                                                                                                
MS.  BRAWLEY  directed  attention   to  slide  6,  entitled   Key                                                               
Concepts   in  Title   4,   which   read  as   follows  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
        The 3-tier system: separation of manufacturers,                                                                       
     wholesalers and retailers to prevent monopolies                                                                            
       Licenses and permits:                                                                                                  
           License: allows a business to sell, serve,                                                                           
     distribute and/or manufacture alcohol for 2 years.                                                                         
      Permit: time-limited alcohol sales or service, by a                                                                       
     licensee or non-licensed organization.                                                                                     
        Population limits: regulates number of licenses                                                                       
     available in each community by type                                                                                        
       Proposed new concept: Endorsements on licenses to                                                                      
     expand premises or allowed activities                                                                                      
                                                                                                                                
MS. BRAWLEY continued to slide 7.   She explained that the 3-tier                                                               
system was created after prohibition  to address the concern that                                                               
monopolies  in the  alcohol  industry  would encourage  behaviors                                                               
that lead  to the consequences  of alcohol misuse.   The original                                                               
3-tier  system  proclaimed  that alcohol  must  be  manufactured,                                                               
distributed,  and sold  to the  public  by different  businesses;                                                               
however, the  industry has evolved since  then, particularly with                                                               
breweries  and  smaller  manufacturers becoming  a  more  popular                                                               
business model that sells directly to  the public (slide 7).  She                                                               
turned   attention   to   slide  8,   entitled    Categories   of                                                               
Recommendations,   which read  as  follows [original  punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     1. Alcohol Licenses, Permits and Trade Practices                                                                           
     2. Role and Functions of the ABC Board and Staff                                                                           
     3. Underage Drinking and Youth Access to Alcohol                                                                           
     4. Regulation of Internet Sales of Alcohol                                                                                 
     5. Technical or Administrative Law Changes                                                                                 
     6. Local Option Communities*                                                                                               
     * Note: Local Option  recommendations are documented in                                                                    
     the   report,  but   not  included   in  SB   52.  More                                                                    
     comprehensive  discussion  of   Local  Option  laws  is                                                                    
     needed in the future.                                                                                                      
                                                                                                                                
4:16:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN asked  if anything  in SB  52 changes  the                                                               
ability to exercise local option for communities in Alaska.                                                                     
                                                                                                                                
SENATOR  MICCICHE noted  the importance  of  not confusing  local                                                               
option communities  with local control.   He said the  only local                                                               
option  that  is  affected  is  the  online  regulation  and  the                                                               
delivery of alcohol to communities that may be local option.                                                                    
                                                                                                                                
4:17:44 PM                                                                                                                    
                                                                                                                                
MS. BRAWLEY resumed her presentation.   She explained that slides                                                               
9-11  illustrate  the  systems   proposed  reorganization.    The                                                               
slides  show  license  type by  each  tier  (manufacturing  tier,                                                               
wholesale tier, retail tier) of  the industry, which endorsements                                                               
would  apply to  those licenses,  and which  licenses are  exempt                                                               
from population limits (slides 9-11).   She noted the three  new                                                                
retail licenses  highlighted on slide 10:  brewery retail, winery                                                               
retail, and  distillery retail.   She said  they are only  new in                                                               
the  sense that  they  are taking  privileges that  manufacturers                                                               
have today and  making them separate retail licenses.   She added                                                               
that  all three  are  proposed under  existing population  limits                                                               
(slide 10).                                                                                                                     
                                                                                                                                
4:19:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES  questioned  whether SB  52  proposes  any                                                               
changes to current population limits.                                                                                           
                                                                                                                                
MS. BRAWLEY said  the bill changes the  proposed brewery, winery,                                                               
and distillery retail licenses, putting  them at 1 per 12,000 for                                                               
new licenses.                                                                                                                   
                                                                                                                                
MS.  BRAWLEY resumed  her presentation  on  slide 12,  explaining                                                               
that the  rest of  the slides  focus on  the proposed  changes to                                                               
Title  4, such  as more  retail options  for manufacturers.   She                                                               
said  under  current law,  the  brewery,  winery, and  distillery                                                               
licenses have manufacturing  and retail privileges    SB 52 would                                                               
split  that  into   two  license  types,  allowing   for  a  pure                                                               
manufacturing license  that could be  used with a  retail license                                                               
(slide  12).    She  turned   attention  to  brewpubs,  which  is                                                               
currently  a  license type  that  can  be  utilized with  a  bar;                                                               
however, it  only allows  the production of  a limited  number of                                                               
gallons per year.   Essentially, she said,  a traditional brewery                                                               
is  limited to  the  amount they  serve to  the  public, while  a                                                               
brewpub can  serve as much  as they want  to the public,  but the                                                               
amount they  can produce  is limited.   SB  52 would  create more                                                               
equity  within this  tier and  give  manufacturers more  options,                                                               
including  participating in  the existing  retail license  system                                                               
(slide 13).   She  noted that slide  14 illustrates  the proposed                                                               
manufacturer sales limits by product type.                                                                                      
                                                                                                                                
4:23:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES  questioned whether  having both  a brewery                                                               
license and a distillery retail  license would allow for the sale                                                               
of 36 ounces of beer and 3 ounces of spirits to the same person.                                                                
                                                                                                                                
MS.  BRAWLEY said  shes  not  sure  if a  licensee can  currently                                                               
utilize two different licenses on the same premises.                                                                            
                                                                                                                                
REPRESENTATIVE STUTES  restated her  question, asking  if someone                                                               
uses different licenses  in the same venue, could  they serve the                                                               
maximum that each license allows to each customer.                                                                              
                                                                                                                                
SENATOR MICCICHE  offered his understanding  that these  types of                                                               
[retail] licenses cannot be stacked.                                                                                            
                                                                                                                                
4:25:01 PM                                                                                                                    
                                                                                                                                
MELISSA  WALTER,  Administrative  Officer,  Alcohol  &  Marijuana                                                               
Control  Office, Department  of  Commerce,  Community &  Economic                                                               
Development, in response to Representative  Stutes, said she does                                                               
not know that policy.                                                                                                           
                                                                                                                                
4:25:19 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
4:25:58 PM                                                                                                                    
                                                                                                                                
MS. BRAWLEY  directed attention to  slide 15.  She  reported that                                                               
endorsements  on licenses  is another  concept proposed  under SB
52.   She  explained  that  this would  allow  for the  potential                                                               
expansion  of  what  a  business   can  do.    Depending  on  the                                                               
endorsement, a  business could serve  on larger grounds  or offer                                                               
additional activities.  She said  it benefits both the individual                                                               
business  and the  system  as  a whole   because  it provides  an                                                               
alternative mechanism  in the policy  instead of just  creating a                                                               
new license for a very specific  business type it would allow for                                                               
the creation  of an endorsement in  the future  (slide 15).   She                                                               
continued to  slide 16,  entitled  Proposed  Endorsements,  which                                                               
read as follows [original punctuation provided]:                                                                                
                                                                                                                                
     ? R-7A | Bowling Alley Endorsement                                                                                         
     ? R-7B | Package Store Shipping Endorsement                                                                                
     ? R-7C | Package Store Delivery Endorsement                                                                                
       R-7D | Package Store Re-Packaging Endorsement                                                                            
     ? [R-1] Multiple Fixed Counter Endorsement                                                                                 
     ? [R-1] Hotel/Motel Endorsement                                                                                            
     ? [R-1] Large Resort Endorsement                                                                                           
     ? [R-3] Package Store Sampling Endorsement                                                                                 
     ? [M-1] Brewery Repackaging Endorsement                                                                                    
                                                                                                                                
MS. BRAWLEY  noted that most  of this language already  exists in                                                               
Title  4, such  as the  three package  store endorsements  (slide                                                               
16).  In contrast, one of  the new endorsements proposed under SB
52 would  allow package stores  to provide small free  samples on                                                               
their premises with  the package store sampling  endorsement.  To                                                               
address  the  concern  of  providing  excess  free  alcohol,  the                                                               
proposal places clear  limits on what can be served.   She stated                                                               
that any  combination of  products can be  served, not  to exceed                                                               
the alcohol equivalent of any single product type (slide 17).                                                                   
                                                                                                                                
CHAIR  SPOHNHOLZ  surmised  that  if business  is  interested  in                                                               
offering  different categories  of alcohol  at the  same time  it                                                               
would have  to be a  proportional amount.   She asked if  that is                                                               
correct.                                                                                                                        
                                                                                                                                
MS. BRAWLEY confirmed that.                                                                                                     
                                                                                                                                
4:28:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN  sought  clarification on  the  underlying                                                               
licenses for several endorsements listed  on slide 16.  She asked                                                               
what  the  underlying license  would  be  for the  bowling  alley                                                               
endorsement.                                                                                                                    
                                                                                                                                
MS.  BRAWLEY  replied  the bowling  alley  endorsement  would  be                                                               
attached to a BDL [beverage  dispensary license].  She referenced                                                               
slide 10,  which provides a  code for the endorsements  and their                                                               
corresponding license.   She noted that not  every endorsement is                                                               
available to every license type.                                                                                                
                                                                                                                                
MS.   BRAWLEY   responding   to   a   follow-up   question   from                                                               
Representative Hannan, said the BDL  allows for liquor, beer, and                                                               
wine  to   be  served,   which  is  one   of  the   aspects  that                                                               
differentiates a  BDL from  a recreational site  license.   For a                                                               
bowling  alley, she  said, the  endorsement allows  drinks to  be                                                               
served at the lanes instead of a designated bar room.                                                                           
                                                                                                                                
CHAIR SPOHNHOLZ questioned whether  the recreational site license                                                               
would exist under SB 52.                                                                                                        
                                                                                                                                
MS. BRAWLEY  explained that the  recreational site  license would                                                               
still exist as  a license type; however, it would  be renamed the                                                               
sporting  event license.   She  noted  that the  language in  the                                                               
statute would remain the same.                                                                                                  
                                                                                                                                
4:31:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN asked  if recreational  site licenses  are                                                               
currently limited to beer and wine.                                                                                             
                                                                                                                                
MS. BRAWLEY affirmed that.                                                                                                      
                                                                                                                                
4:32:16 PM                                                                                                                    
                                                                                                                                
MS. BRAWLEY resumed  her presentation on slide  18, entitled  R-7                                                               
Standardize   Permits,    which   read   as   follows   [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
      ? Unlike licenses, permits are typically issued for                                                                       
     single events, on or off licensed premises.                                                                                
       ? Define all permit types in statute, not just in                                                                        
     regulation                                                                                                                 
     ? Fee for all permits is $50 per event day                                                                                 
        ? Most permits listed are already in statute or                                                                         
     regulation                                                                                                                 
     ? New permit: Tasting Event Permit, allowing a Package                                                                     
       Store to host an event on premises, in partnership                                                                       
     with a BDL                                                                                                                 
                                                                                                                                
MS. BRALWEY highlighted the list  of proposed permits on slide 19                                                               
and continued to slide 20.   She explained that the package store                                                               
tasting  event permit  would  allow  a package  store  to host  a                                                               
special  tasting   event  on  its   own  premises,   with  onsite                                                               
consumption of alcohol for those  attending the event.  She noted                                                               
that the  event may last  for four hours and  must end by  9 p.m.                                                               
Furthermore, it  limits each  license to six  events per  year in                                                               
the same  community as the  license is  located (slide 20).   She                                                               
informed  the committee  that population  limits currently  exist                                                               
under Title 4  to determine how many of each  license type may be                                                               
issued in each community (slide  21).  Population limited are set                                                               
by  each  local  government,  which can  exist  within  a  larger                                                               
borough.  She  explained that there are a set  number of licenses                                                               
based on  the residents in  the local government    separate from                                                               
the  residents  in  the  surrounding borough  (slide  22).    She                                                               
directed attention to slide 23,  entitled Seasonal REPL Tourism,                                                                
which read as follows [original punctuation provided]:                                                                          
                                                                                                                                
     ? Seasonal restaurant license                                                                                              
     ? Available in smaller communities (< 40,000 pop.)                                                                         
      ? Same operating requirements and privileges as full                                                                      
     year                                                                                                                       
     restaurants (REPL)                                                                                                         
        ? Number of licenses per community determined by                                                                        
     formula:                                                                                                                   
     - 5-year average of annual visitors/months in season =                                                                     
     Average monthly visitor population                                                                                         
        - (Residents + Average monthly visitors)/1,500 =                                                                        
     Available Seasonal REP Tourism licenses                                                                                    
      ? Season defined as up to 6 months per year, in any                                                                       
     combination                                                                                                                
       Example: May through September + 1 winter month                                                                          
                                                                                                                                
MS. BRAWLEY  stated that the public  convenience system currently                                                               
exists  under  Title  4.    It allows  an  individual  seeking  a                                                               
restaurant or  eating place license  (REPL) in a  community where                                                               
there  arent   any  licenses available  to  purchase  to  collect                                                               
petitions that  can be  turned into  AMCO.   From there,  the ABC                                                               
Board evaluates whether issuing  the license would satisfy public                                                               
convenience.    She  explained that  SB  52  proposes  converting                                                               
existing   public   convenience   restaurants   to   full   scale                                                               
restaurants (slide  24).  An  alternative to the  proposed public                                                               
convenience  system is  to have  local  governments petition  for                                                               
additional  restaurant  licenses  [AS  04.11.405].    This  would                                                               
provide   cities   more   local   control   and   encourage   the                                                               
concentration of  commercial uses in  the city center  instead of                                                               
outside the boarders.                                                                                                           
                                                                                                                                
4:40:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN  asked  if  a city  could  apply  for  the                                                               
proposed local government  petition for a REPL in  advance of the                                                               
existing businesses.                                                                                                            
                                                                                                                                
SENATOR MICCICHE confirmed that.   He explained that if the board                                                               
approves  the licenses  that were  petitioned for,  the city  can                                                               
hold the licenses and then market them to licensees.                                                                            
                                                                                                                                
REPRESENTATIVE  HANNAN asked  when the  fee  must be  paid.   She                                                               
questioned  whether the  city is  required  to put  the money  up                                                               
front for the  licenses they petition for or if  they wait to pay                                                               
it until there is a physical restaurant to put on the books.                                                                    
                                                                                                                                
SENATOR  MICCICHE  offered  his understanding  that  the  license                                                               
would not  be active  until it  is awarded  to someone  who would                                                               
then go through AMCO to pay the fee and claim the license.                                                                      
                                                                                                                                
4:42:15 PM                                                                                                                    
                                                                                                                                
MS.  BRAWLEY resumed  her presentation  on slide  26.   She noted                                                               
that currently, Title 4 allows for  the relocation of a bar (BDL)                                                               
from a borough to a city.   The bill would keep that provision in                                                               
place  while  also  allowing the  relocation  of  package  stores                                                               
without creating  a new license  (slide 26).  Another  issue, she                                                               
said,  is  the  enforcement  of existing  federal  law  regarding                                                               
illegal trade  practices.   The concern  centers around  how much                                                               
consolidation of market power there  would be in manufacturers or                                                               
wholesalers.    To  counteract that,  the  bill  proposes  adding                                                               
equivalent  sections   to  Title  4,  protecting   retailers  and                                                               
allowing  for  state enforcement.    She  noted that  this  would                                                               
protect manufacturers  and wholesalers as well  by promoting free                                                               
competition rather than shutting competitors out (slide 27).                                                                    
                                                                                                                                
MS. BRAWLEY turned  to the adjustment of license  fees to reflect                                                               
current ABC  Board budgetary needs.   She explained that  in many                                                               
cases, the same  type of business is paying a  different level of                                                               
fee  for the  same  activities.   She said  this  is relevant  to                                                               
ensure  that license  fees are  fair across  different licensees.                                                               
She noted that  it also requires the ABC Board  to review license                                                               
fees every 5  years and if appropriate,  forward a recommendation                                                               
to  the legislature  (slide  28).   She  continued  to slide  29,                                                               
entitled   More  Accountability  for License  Fees  Allocated  to                                                               
Local Governments,   which read as follows  [original punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
        • Current Title 4 allows for local government to                                                                        
          receive an allocation equal to the license fees                                                                       
          collected in their area, intended for enforcement                                                                     
          of Title 4 and related ordinances.                                                                                    
        • Reporting on these activities is required, but                                                                        
          not defined in statute. Some jurisdictions report                                                                     
          regularly, while others do not.                                                                                       
        • The bill includes better reporting and prevention                                                                     
          about use of these funds and requiring reports                                                                        
          about    education   activities    as   well    as                                                                    
          enforcement.                                                                                                          
                                                                                                                                
MS. BRAWLEY  directed attention to  slide 30.   She said  the ABC                                                               
Board and AMCO, would work  with other agencies and organizations                                                               
to  develop  a  coordinated   education  plan  about  responsible                                                               
alcohol use and Title 4.                                                                                                        
                                                                                                                                
4:47:29 PM                                                                                                                    
                                                                                                                                
MS.  BRAWLEY  addressed  the  next   slide,  slide  31,  entitled                                                               
Internet  Sales in  Alaska:  Few Rules,   which  read as  follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     ? Alaska  is one of the  only states with no  rules for                                                                    
     Internet sales of alcohol.                                                                                                 
     ?  Alaska Package  Stores cannot  sell alcohol  online,                                                                    
     only via (paper) written orders.                                                                                           
       Alaska Wineries  and Package Stores can  ship wine to                                                                    
     customers in some circumstances.                                                                                           
     ? Without  state laws  restricting online  sales, there                                                                    
     are currently no limits on  purchases of alcohol online                                                                    
     from out-of-state sellers.                                                                                                 
     ? Alaska consumers also do  not pay state excise tax on                                                                    
     online  purchases,  as they  do  on  products sold  and                                                                    
     purchased in state.                                                                                                        
                                                                                                                                
MS. BRAWLEY  explained that  SB 52 would  create a  winery direct                                                               
shipment license  and allow online  alcohol sales only  from U.S.                                                               
wineries and Alaska  package stores.  She said  the winery direct                                                               
shipment licensee would verify that  the customer is 21 or older,                                                               
that the  customer is in  a non-local  option area, and  that the                                                               
order is within the limit for  personal use, which is 6 cases per                                                               
sale and 12 cases per year (slide 32).                                                                                          
                                                                                                                                
CHAIR SPOHNHOLZ asked how the  licensee would verify that a buyer                                                               
is 21 or older when making an online purchase.                                                                                  
                                                                                                                                
MS. BRAWLEY said  shes  not familiar with  the specific software;                                                               
however, many wineries use ID verification.                                                                                     
                                                                                                                                
4:49:42 PM                                                                                                                    
                                                                                                                                
SENATOR MICCICHE  added that  the system  would require  that the                                                               
person ordering the alcohol is carded upon delivery.                                                                            
                                                                                                                                
CHAIR   SPOHNHOLZ   clarified    that   the   proposal   requires                                                               
verification of age.                                                                                                            
                                                                                                                                
4:50:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RASMUSSEN shared a  personal anecdote in which she                                                               
was required to show ID upon delivery of a bottle of wine.                                                                      
                                                                                                                                
CHAIR  SPOHNHOLZ sought  to clarify  whether age  verification is                                                               
required by state law.                                                                                                          
                                                                                                                                
SENATOR  MICCICHE noted  that the  spectrum  of operators  varies                                                               
dramatically.   He said SB  52 would require that  every operator                                                               
is required  to verify the  ID card  of the person  receiving the                                                               
package.                                                                                                                        
                                                                                                                                
4:51:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN  inquired  as  to why  only  wineries  and                                                               
package stores can ship directly.                                                                                               
                                                                                                                                
SENATOR MICCICHE  clarified that the current  discussion is about                                                               
selling alcohol  online.  He said  that in Alaska, wine  the only                                                               
type of alcohol that can be sold online.                                                                                        
                                                                                                                                
MS. BRAWLEY noted that an in-state  package store can sell any of                                                               
their products  to a  customer through  written order,  which has                                                               
been interpreted to mean that the  store has the customers  ID on                                                               
file.  She further noted that  currently, the state does not have                                                               
laws regulating  this; however,  the U.S.  Postal Service  is not                                                               
allowed  to  ship alcohol,  and  both  UPS  and FedEx  have  also                                                               
decided to only allow commercial shipments of wine.                                                                             
                                                                                                                                
4:53:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RASMUSSEN   questioned  whether  wine   could  be                                                               
delivered to from grocery stores via Instacart.                                                                                 
                                                                                                                                
MS. BRAWLEY  said that specific  business model is  not discussed                                                               
in  the bill;  however, certain  stores, such  as Fred  Meyer and                                                               
Safeway  have their  own package  store license,  which could  be                                                               
used to  provide that  service.   She noted  that it  would still                                                               
need  to  be   delivered  to  an  individual  at   home  with  ID                                                               
verification upon arrival.                                                                                                      
                                                                                                                                
4:55:19 PM                                                                                                                    
                                                                                                                                
MS.  BRAWLEY  directed  attention  to slide  33  to  discuss  the                                                               
regulation of  common carriers.   She stated all  common carriers                                                               
must  be approved  by  the  ABC Board  to  transport and  deliver                                                               
alcohol  to  consumers  throughout  the  state.    Carriers  must                                                               
demonstrate  that  they  have policies  and  train  employees  to                                                               
properly handle  shipments of  alcohol.  She  added that  the ABC                                                               
Board would  publish that list  of carriers, making  it available                                                               
to direct  shipment licensees and in-state  package stores (slide                                                               
33).                                                                                                                            
                                                                                                                                
REPRESENTATIVE  RASMUSSEN expressed  concern  about the  business                                                               
model.                                                                                                                          
                                                                                                                                
SENATOR MICCICHE,  in response to Representative  Rasmussen, said                                                               
thats   what  the  common  carrier   regulations  are  for.    He                                                               
reiterated  that  the  common carrier  would  be  authorized  for                                                               
alcohol  deliveries  and would  have  the  necessary policies  in                                                               
place.  He  offered his belief that those  policies would include                                                               
barring underage individuals from delivering alcohol.                                                                           
                                                                                                                                
4:58:14 PM                                                                                                                    
                                                                                                                                
MS. BRAWLEY  noted that current  laws allow  underage individuals                                                               
to  work in  restaurants; however,  they cannot  deliver alcohol.                                                               
She continued  to slide 34.   She said there is  already a system                                                               
in place that tracks alcohol  orders to local option areas, which                                                               
the bill would maintain.  She  added that in current Title 4, all                                                               
data in  the local option  order database is private  and deleted                                                               
after one  year.  SB  52 would keep individual  order information                                                               
private but retain aggregate data for  10 years and allow the ABC                                                               
Board  to  publish  annual  total   sales  volume  by  region  or                                                               
community  that is  available  to  the public  (slide  35).   She                                                               
continued   to  slide   36,  entitled    RB-6.  Revise   Title  4                                                               
Penalties,    which  read   as   follows  [original   punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
        ? Review penalties for all Title 4 sections, and                                                                        
      revise as needed to make penalties proportionate to                                                                       
     the offense, and more consistently enforced.                                                                               
      ? Retain existing Misdemeanor and Felony charges for                                                                      
      serious offenses, particularly those causing harm to                                                                      
     children.                                                                                                                  
      Ensure that the ABC Board, and licensee, is informed                                                                      
        about Title 4 convictions: require court to send                                                                        
     records to AMCO, and AMCO to send to the licensee.                                                                         
     ? ABC Board retains authority to impose conditions or                                                                      
     additional penalties, including suspending or revoking                                                                     
     license.                                                                                                                   
      ? See Appendix, Table 3 in Title 4 Review Report for                                                                      
     table of all current penalties and proposed changes.                                                                       
                                                                                                                                
MS. BRAWLEY noted that one  of the most important penalty changes                                                               
is  increasing the  immediate accountability  of licensees.   She                                                               
said in  current Title 4,  a licensee or employee  who overserves                                                               
an intoxicated adult or serves alcohol  to a minor is guilty of a                                                               
class A  misdemeanor.  SB  52 would  change the penalty  for both                                                               
statutes to a minor offense with  a $500 fine.  Additionally, the                                                               
owner of the  license would receive an  administrative penalty of                                                               
$250.  This  would alert the owner that a  violation occurred and                                                               
would  hold  them   immediately  accountable,  while  encouraging                                                               
future  compliance   (slide  38).    To   conclude,  Ms.  Brawley                                                               
highlighted required keg registration.   She said it is currently                                                               
required in Anchorage and Juneau, but  under SB 52, it would be a                                                               
statewide requirement.   She explained that kegs  tagged with the                                                               
purchasers  contact information can  be tracked if confiscated at                                                               
an  underage party  to better  enforce  underage drinking  (slide                                                               
39).                                                                                                                            
                                                                                                                                
5:02:28 PM                                                                                                                    
                                                                                                                                
CHAIR SPOHNHOLZ asked  how the proposed fines  for overserving an                                                               
adult  or serving  a minor  compare  to the  fines under  current                                                               
Alaska law.                                                                                                                     
                                                                                                                                
MS. BRAWLEY said  the penalty for an employee  that overserves an                                                               
adult or  serves a minor is  a class A misdemeanor,  resulting in                                                               
up to  a $10,000  fine and  a court appearance.   She  added that                                                               
there is no  immediate penalty on the licensee,  which means they                                                               
might  not be  aware  of  the situation  until  they renew  their                                                               
license.                                                                                                                        
                                                                                                                                
5:04:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STORY asked for the current violation rates.                                                                     
                                                                                                                                
SENATOR MICCICHE said  they are artificially low  because it sets                                                               
an extreme  fine that leads  to unlikely conviction.   He offered                                                               
his belief  that enforcement loses  interest when they  know that                                                               
the penalty  will not  be realized.   He  added that  the penalty                                                               
proposed under SB 52 would most likely lead to more results from                                                                
local or departmental enforcement.                                                                                              
                                                                                                                                
[SB 52 was held over.]                                                                                                          
                                                                                                                                
5:06:11 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Labor and Commerce Standing Committee meeting was adjourned at                                                                  
[5:06] p.m.                                                                                                                     

Document Name Date/Time Subjects
HB 235 Work Draft ver. M 03.06.2020.pdf HL&C 3/9/2020 3:15:00 PM
HB 235
HB 235 TVEP Rate Increase and New Allocation Structure 03.08.2020.pdf HL&C 3/9/2020 3:15:00 PM
HB 235
HB 235 Work Draft ver. M Explanation of Changes 03.08.2020.pdf HL&C 3/9/2020 3:15:00 PM
HB 235
HB 235 Supporting Document- ATC Letter 02.28.2020.pdf HL&C 3/9/2020 3:15:00 PM
HB 235
HB 235 ASMI Letter of Support 03.06.2020.pdf HL&C 3/9/2020 3:15:00 PM
HB 235
HB 235 Supporting Document- Illisagvik Letter 02.26.2020.pdf HFIN 3/16/2020 1:30:00 PM
HL&C 3/9/2020 3:15:00 PM
HB 235
HB 235.Backup Flow Chart 2.21.2020.pdf HL&C 2/21/2020 3:15:00 PM
HL&C 3/9/2020 3:15:00 PM
HB 235
HB 235 Sponsor Statement 2.21.2020.pdf HL&C 2/21/2020 3:15:00 PM
HL&C 3/9/2020 3:15:00 PM
HB 235
HB 301 Work Draft ver E 03.06.2020.pdf HL&C 3/9/2020 3:15:00 PM
HL&C 3/11/2020 3:15:00 PM
HB 301
HB 301 AJEATT letter re proposed regulatory changes 1.13.2020.pdf HL&C 3/9/2020 3:15:00 PM
HL&C 3/11/2020 3:15:00 PM
HB 301
HB 301 Supporting Document ASAC Regulatory Response 1.12.20.pdf HL&C 3/9/2020 3:15:00 PM
HL&C 3/11/2020 3:15:00 PM
HB 301
HB 301 Sponsor Statement.pdf HL&C 3/9/2020 3:15:00 PM
HL&C 3/11/2020 3:15:00 PM
SL&C 3/26/2020 1:30:00 PM
HB 301
HB 301 Fiscal Note DOLWD WD 03.06.2020.pdf HL&C 3/9/2020 3:15:00 PM
HL&C 3/11/2020 3:15:00 PM
HB 301
HB 301 Fiscal Note DOLWD MI 03.06.2020.pdf HL&C 3/9/2020 3:15:00 PM
HL&C 3/11/2020 3:15:00 PM
HB 301
HB 301 Pipe Trades letter of support 03.06.2020.PDF HL&C 3/9/2020 3:15:00 PM
HL&C 3/11/2020 3:15:00 PM
HB 301
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 Sponsor Statement v. E.A 03.02.2020.pdf HL&C 3/9/2020 3:15:00 PM
HL&C 3/11/2020 3:15:00 PM
HL&C 3/18/2020 3:15:00 PM
SB 52
SB 52 Sectional Analysis v. E.A 03.02.2020.pdf HL&C 3/9/2020 3:15:00 PM
HL&C 3/11/2020 3:15:00 PM
HL&C 3/18/2020 3:15:00 PM
SB 52
SB 52 Letters of Support with cover sheet.pdf HL&C 3/9/2020 3:15:00 PM
HL&C 3/11/2020 3:15:00 PM
SB 52
HB 235 Support Letter for Dedicated TVEP Funding to Seafood Industry- NPSI 3.7.20.pdf HL&C 3/9/2020 3:15:00 PM
HB 235
HB 235 Support Letter for Dedicated TVEP Funding to Seafood Industry-ARC 3.7.20.pdf HL&C 3/9/2020 3:15:00 PM
HB 235
HB 235 Additional Document-About Kodiak Seafood and Marine Science Center 3.7.20.pdf HL&C 3/9/2020 3:15:00 PM
HB 235
HB 235 Additional Document-ARC Processor Survey 3.7.20.pdf HL&C 3/9/2020 3:15:00 PM
HB 235
HB 235 Additional Document-Kodiak Seafood and Marine Science Center Annual Report FY19 3.7.20.pdf HL&C 3/9/2020 3:15:00 PM
HB 235
HB 235 Support Letter for Dedicated TVEP Funding to Seafood Indsutry- PSPA 3.7.20.pdf HL&C 3/9/2020 3:15:00 PM
HB 235
HB 235 UA Support Letter 02.28.2020.pdf HL&C 3/9/2020 3:15:00 PM
HB 235
SB 52 Title IV presentation 03.09.2020.pdf HL&C 3/9/2020 3:15:00 PM
HL&C 3/11/2020 3:15:00 PM
HL&C 3/18/2020 3:15:00 PM
SB 52