Legislature(1993 - 1994)
04/12/1994 09:02 AM Senate CRA
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SENATE COMMUNITY & REGIONAL AFFAIRS
April 12, 1994
9:02 a.m.
MEMBERS PRESENT
Senator Randy Phillips, Chairman
Senator Robin Taylor, Vice Chairman
Senator Loren Leman
Senator Al Adams
Senator Fred Zharoff
MEMBERS ABSENT
All Members Present
COMMITTEE CALENDAR
SENATE BILL NO. 372
"An Act relating to community local options for control of
alcoholic beverages; relating to the control of alcoholic
beverages; relating to the definition of `alcoholic beverage'; and
providing for an effective date."
PREVIOUS SENATE COMMITTEE ACTION
SB 372 - No previous action to record.
WITNESS REGISTER
Teresa Williams, Assistant Attorney General
Department of Law
1032 W. 4th, Suite 200
Anchorage, AK 99501-1994
POSITION STATEMENT: Offered information on SB 372
Pat Sharrock, Director
Alcoholic Beverage Control Board
550 W. 7th, Suite 350
Anchorage, AK 99501-3510
POSITION STATEMENT: Offered information in support of
SB 372
Jack Pearson, City Manager
City of Ketchikan
334 Front St.
Ketchikan, AK 99901
POSITION STATEMENT: Voiced support for SB 372
Cheri Davis
P.O. Box 5723
Ketchikan, AK 99901
POSITION STATEMENT: Testified on SB 372
ACTION NARRATIVE
TAPE 94-27, SIDE A
Number 001
The Senate Community & Regional Affairs Committee was called to
order by Chairman Randy Phillips at 9:02 a.m. He introduced SB 372 2
(ALCOHOLIC BEVERAGES: LOCAL OPTION & MISC.) as the only order of
business.
TERESA WILLIAMS, Assistant Attorney General, Department of Law,
testifying via the teleconference network from Anchorage, explained
that the current local option law is very complicated and sometimes
unworkable to achieve the outcome that a community wishes to
achieve. The Alcoholic Beverage Control Board and the Department
of Community & Regional Affairs have received numerous phone calls
requesting assistance, however, on some occasions no assistance can
be provided because the language of the statute is so rigid. SB
372 simplifies and reorganizes the current local option law making
it more understandable and workable.
Ms. Williams outlined some additions to the existing menu of local
options that are available. The only material changes to existing
options are: (1) to allow for a municipal restaurant or eating
place license (beer and wine only); (2) to limit the types of
licenses that could be available if a community opts to restrict
licenses; and (3) to allow communities to opt for sales under a
permit issued under AS 04.11.230 by a beverage dispensary licensee
who operates a premises outside of the area. Additionally, if the
community has placed restrictions on sale, but allows importation,
it may designate a delivery site under this section. She explained
that communities would be able to allow a beverage dispensary
license from outside of the area to use a permit to come within the
area. This is something that has been requested by some
communities that don't want a bar within the community, but for a
special function they would like an operation by permit within
their community.
There has also been much more flexibility given in drafting the
wording of the ballot question, which has been a problem in the
past because of the rigid language in the current statute, and a
new provision has been added that establishes a procedure that
makes it much easier for a community to change from one local
option to another.
Number 175
PAT SHARROCK, Director, Alcoholic Beverage Control Board, said the
board has been trying to propose this legislation for a number of
years. Several years ago a bill was introduced in the Senate to
try to address the problem, but it did not get out of the House
Rules Committee. He complimented Ms. Williams for her hard work in
drafting SB 372, which, he said, is an outstanding piece of
legislation.
Mr. Sharrock said the primary impact of SB 372 is to change the
local option provisions to allow communities to more easily select
from a menu of options that exist in current law. He noted that
over the approximately 14-year period since Title 4 was rewritten,
there have been 112 communities that have voted to opt for one of
the current option provisions under the law. What has been
occurring is that they are trying to make some changes into other
areas of local options, and they are finding it very difficult
because of the way the question has to be worded under current law
and what happens if they do adopt that election. He spoke to a
problem the City of St. Mary's has encountered with applying
existing statutes to local option election procedures.
Mr. Sharrock pointed out that, with one exception, all of the local
option provisions in current law are retained in SB 372. The only
exception is that it allows a city to adopt a local option to allow
for the sale of alcoholic beverages only through a caterer's permit
issued to a current bar owner.
Mr. Sharrock emphasized the importance of revising the local option
provisions in current law. He said they have worked well over the
years they have been there, but communities are trying to change
those provisions now and they are running into great difficulties.
Mr. Sharrock then outlined corrective and technical amendments that
appear in Sections 1-4, 6, 12, 15, 26, 42, 43 and 44 of SB 372.
Number 380
TERESA WILLIAMS, speaking to the definition of "alcoholic beverage"
contained in Section 4, said they are not making hair spray an
alcoholic beverage that is controlled under this law. It would
only become an alcoholic beverage after it's converted to the
beverage where it would be intended by the purchaser or the seller
for human consumption.
Number 385
SENATOR ZHAROFF noted the bill prohibits a package store from
advertising through individual fliers, mailings, etc., but he
wondered about a local newspaper. PAT SHARROCK answered that the
board doesn't have any regulation or control over that.
Number 395
SENATOR RANDY PHILLIPS stated the committee would take testimony
from Ketchikan via the teleconference network.
JACK PEARSON, City Manager of Ketchikan, stated the city's support
for SB 372.
Number 400
CHERI DAVIS, Ketchikan, said a creative idea that came out of
discussions by the Ketchikan Chamber of Commerce and that might be
pursued somewhere down the road is the idea of potentially having
a municipality buy all of the liquor licenses in the community and
then lease some of them back depending on how many it was felt were
in necessary in the community. She asked if that would be possible
under either the current law or the legislation being considered.
TERESA WILLIAMS answered that under current law a liquor licensed
cannot be leased, and she expressed concern with providing that
ability. PAT SHARROCK added that Fairbanks formed a whole
development corporation that went out and bought licenses and
retransferred them to other persons, but he said he doesn't know
how successful the effort has been. Also, Kodiak is discussing
doing the same thing.
Number 425
SENATOR ZHAROFF asked if the Internal Revenue Service can seize a
liquor license. TERESA WILLIAMS answered that the IRS did seize a
liquor license in Juneau, and the department has been in
litigations with the IRS since 1990. They are in front of the U.S.
Supreme Court right now on the matter, but she did not want to
comment any further on the issue.
Number 435
SENATOR TAYLOR asked if the legislation has any fiscal impact. PAT
SHARROCK answered that there was a $1,000 fiscal note from the
Division of Elections to cover the costs of a by-mail local option
election in unincorporated areas.
There being no further testimony on SB 372, SENATOR RANDY PHILLIPS
asked for the pleasure of the committee.
SENATOR ADAMS moved that SB 372 be passed out of committee with
individual recommendations. Hearing no objection, it was so
ordered.
There being no further business to come before the committee, the
meeting was adjourned at 9:35 a.m.
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