Legislature(2019 - 2020)SENATE FINANCE 532

02/19/2020 09:00 AM FINANCE

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09:03:42 AM Start
09:04:08 AM SB52
10:33:26 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 52 ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG TELECONFERENCED
Moved CSSB 52(FIN) Out of Committee
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                 SENATE FINANCE COMMITTEE                                                                                       
                     February 19, 2020                                                                                          
                         9:03 a.m.                                                                                              
                                                                                                                                
9:03:42 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  von  Imhof  called the  Senate  Finance  Committee                                                                    
meeting to order at 9:03 a.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Natasha von Imhof, Co-Chair                                                                                             
Senator Click Bishop                                                                                                            
Senator Lyman Hoffman                                                                                                           
Senator Donny Olson                                                                                                             
Senator Bill Wielechowski                                                                                                       
Senator David Wilson                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Bert Stedman, Co-Chair                                                                                                  
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Senator  Peter  Micciche,  Sponsor; Konrad  Jackson,  Staff,                                                                    
Senator  Peter Micciche;  Beth McEwen,  Self, Juneau;  Nancy                                                                    
Meade, General Counsel, Alaska  Court System; Matt Davidson,                                                                    
Program  Officer, Division  of Juvenile  Justice, Department                                                                    
of  Health  and  Social  Services;  Brandon  Spanos,  Deputy                                                                    
Director, Tax Division, Department of Revenue.                                                                                  
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Anna  Brawley, Agnew  Beck Consulting;  Sarah Oates,  Alaska                                                                    
Cabaret,  Hotel,   Restaurant  and   Retailers  Association,                                                                    
Anchorage;  Mike  Abbot,  CEO, Alaska  Mental  Health  Trust                                                                    
Authority (AMHTA), Anchorage;  Tiffany Hall, Recover Alaska,                                                                    
Anchorage;  Glen Klinkhart,  Interim  Director, Alcohol  and                                                                    
Marijuana Control Office,  Department of Commerce, Community                                                                    
and Economic Development.                                                                                                       
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 52     ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG                                                                               
                                                                                                                                
          CSSB 52(FIN)  was REPORTED  out of  committee with                                                                    
          two   "do    pass"   recommendations,    two   "no                                                                    
          recommendation"  recommendations, and  one "amend"                                                                    
          recommendation;  and with  one  new fiscal  impact                                                                    
          note  from the  Department of  Commerce, Community                                                                    
          and   Economic   Development,  one   indeterminate                                                                    
          fiscal note  from the  Department of  Revenue, one                                                                    
          fiscal  impact note  from the  Judiciary, and  one                                                                    
          statement   of   zero   fiscal  impact   for   the                                                                    
          Department  of  Commerce, Community  and  Economic                                                                    
          Development  and  the  Department  of  Health  and                                                                    
          Social Services.                                                                                                      
                                                                                                                                
SENATE BILL NO. 52                                                                                                            
                                                                                                                                
     "An Act  relating to  alcoholic beverages;  relating to                                                                    
     the  regulation  of   manufacturers,  wholesalers,  and                                                                    
     retailers   of   alcoholic   beverages;   relating   to                                                                    
     licenses,    endorsements,   and    permits   involving                                                                    
     alcoholic   beverages;  relating   to  common   carrier                                                                    
     approval to  transport or deliver  alcoholic beverages;                                                                    
     relating  to  the  Alcoholic  Beverage  Control  Board;                                                                    
     relating  to  offenses involving  alcoholic  beverages;                                                                    
     amending  Rule 17(h),  Alaska  Rules  of Minor  Offense                                                                    
     Procedure; and providing for an effective date."                                                                           
                                                                                                                                
9:04:08 AM                                                                                                                    
                                                                                                                                
Co-Chair  von  Imhof  noted  that   SB  52  had  been  heard                                                                    
previously on February 11, and  the committee would continue                                                                    
the  presentation  and   consider  the  sectional  analysis,                                                                    
fiscal notes, and public testimony.  If there was sufficient                                                                    
time the committee would consider amendments.                                                                                   
                                                                                                                                
9:05:05 AM                                                                                                                    
                                                                                                                                
SENATOR  PETER MICCICHE,  SPONSOR, commented  that the  bill                                                                    
was  the result  of an  8-year effort.  He thought  everyone                                                                    
knew there was  a group of stakeholders working  in the same                                                                    
direction.                                                                                                                      
                                                                                                                                
9:06:02 AM                                                                                                                    
                                                                                                                                
KONRAD  JACKSON, STAFF,  SENATOR  PETER MICCICHE,  commented                                                                    
that the bill  was long and somewhat  intimidating. He added                                                                    
that the sectional  analysis was long, and  many sections of                                                                    
the bill  were reordered and reorganized  for clarity, which                                                                    
had been  lacking in Title 4.  He stated that he  would only                                                                    
quickly   mention  the   reordered   sections,  which   were                                                                    
highlighted  in yellow.  Other  sections  with changes  were                                                                    
highlighted in magenta and green.                                                                                               
                                                                                                                                
Mr. Jackson addressed the Sectional  Analysis (copy on file)                                                                    
[secretary's note:  only portions of the  sectional analysis                                                                    
that were discussed are included due to document length]:                                                                       
                                                                                                                                
     Sectional Analysis  Version K                                                                                              
     5/2/2019                                                                                                                   
     Alcoholic Beverage Control; Alcohol Regulation                                                                             
     Title 4, Chapter 6: Alcoholic Beverage Control Board                                                                       
                                                                                                                                
     Sections 1-9  Authority and duties of  the board; Pages                                                                    
     1-5                                                                                                                        
                                                                                                                                
     Section  1: Declaration  of  Policy; purpose;  finding.                                                                    
     Adds a new section AS 04.06.005 (Pages 1-2)                                                                                
                                                                                                                                
     Section   2:  Authority   of  director.   Adds  a   new                                                                    
     subsection AS  04.06.075 to  require that  the director                                                                    
     of  the Alcoholic  Beverage Control  board (ABC  board)                                                                    
     shall  include in  the  agency's  budget resources  for                                                                    
     administration,  enforcement, education,  training, and                                                                    
     prevention activities under Title 4. (Page 2)                                                                              
                                                                                                                                
Mr. Jackson explained that Sections  3, 4, and 5 were simply                                                                    
reordered.  He addressed  other  sections  in the  sectional                                                                    
analysis:                                                                                                                       
                                                                                                                                
     Section 6:  Powers and duties.  Amends AS  04.06.090 to                                                                    
     add  a new  subsection (f)  that directs  the board  to                                                                    
     prepare  a Title  4 education  plan for  public safety,                                                                    
     industry,  youth, municipalities,  and the  public with                                                                    
     annual revision.                                                                                                           
                                                                                                                                
     Adds new  subsections (g-j) which  direct the  board to                                                                    
     review   fees  every   5  years,   allow  opinions   on                                                                    
     legislation amending this title,  requires the board to                                                                    
     provide  notice   of  violations  to   licensees  after                                                                    
     receiving  from  the court  system,  and  to post  FASD                                                                    
     information online. (Page 3)                                                                                               
                                                                                                                                
Mr.  Jackson   noted  that  Section  7   was  reordered.  He                                                                    
continued to read from the sectional analysis:                                                                                  
                                                                                                                                
                                                                                                                                
     Subsection   8:   Statewide   database.  Adds   a   new                                                                    
     subsection  AS 04.06.095,  which directs  the board  to                                                                    
     produce  a  report  of   aggregate  regional  sales  of                                                                    
     alcohol  in local  option areas,  based on  information                                                                    
     retained  in  database  and not  including  identifying                                                                    
     data about an individual purchaser or seller. (Page 4)                                                                     
                                                                                                                                
Mr.  Jackson   noted  that  Section  7   was  reordered.  He                                                                    
continued to read from the sectional analysis:                                                                                  
                                                                                                                                
     New Chapter 9: Licenses, Endorsements and Permits                                                                          
                                                                                                                                
     Section  10: Adds  the  new  Chapter 09  to  Title 4                                                                       
     Licenses,  Endorsements  and   Permits.  Relocates  and                                                                    
     renumbers  many  existing  licenses  and  permits  from                                                                    
     Chapter 11. Organizes into  articles of licenses listed                                                                    
     by  the   3  tiers:  manufacture,   wholesale,  retail;                                                                    
     endorsements; and permits. (Pages 5-51)                                                                                    
                                                                                                                                
Mr.  Jackson  noted  that  in  Article  2  there  were  four                                                                    
sections that were reordered. He  continued to read from the                                                                    
sectional analysis:                                                                                                             
                                                                                                                                
     AS  04.09.050.   Authorized  sales.   Retains  existing                                                                    
     privileges   for   smaller   manufacturers   to   self-                                                                    
     distribute to  retail, wholesale, permitted and  out of                                                                    
     state    or   country    licensees.   Requires    large                                                                    
     manufacturers  to  go through  wholesale  distributors.                                                                    
     (Pages 6-7)                                                                                                                
                                                                                                                                
     AS   04.09.060.  Unlicensed   manufacturing.  Relocates                                                                    
     existing penalty for unlicensed manufacture from                                                                           
     04.11.010. (Page 7)                                                                                                        
                                                                                                                                
9:08:57 AM                                                                                                                    
                                                                                                                                
Mr.  Jackson continued  to address  parts  of the  sectional                                                                    
analysis:                                                                                                                       
                                                                                                                                
Mr. Jackson  noted that  Article 3  was reordered,  with the                                                                    
reduction   in   annual   transaction   fees   for   smaller                                                                    
businesses.  He   continued  to  read  from   the  sectional                                                                    
analysis:                                                                                                                       
                                                                                                                                
     AS  04.09.110. Limited  wholesale  brewed beverage  and                                                                    
     wine license. Relocates limited wholesale license                                                                          
     from   previous    wholesale   license    section   (AS                                                                    
     04.11.160(b))  in a  separate  section, maintains  $400                                                                    
     biennial  fee,  maintains   maximum  $10,000  fee,  and                                                                    
     reduces   annual    transaction   fees    for   smaller                                                                    
     businesses. (Page 9)                                                                                                       
                                                                                                                                
     AS  04.09.150.  Failure  to  pay  annual  fee  or  file                                                                    
     affidavit.  States  that  failure   to  pay  an  annual                                                                    
     wholesale fee                                                                                                              
     or  file  an affidavit  is  a  violation and  sets  the                                                                    
     penalty. (Page 11)                                                                                                         
                                                                                                                                
     AS  04.09.160.  Failure to  pay  biennial  fee or  file                                                                    
     declaration. States that failure  to pay a biennial fee                                                                    
     and                                                                                                                        
     failure to  file a declaration are  violations and sets                                                                    
     the penalty. (Page 11)                                                                                                     
                                                                                                                                
     Article 4. Retail Licensees                                                                                                
                                                                                                                                
     AS  04.09.200. Beverage  dispensary license.  Relocates                                                                    
     and   simplifies   the   BDL  license   language   from                                                                    
     04.11.090,   maintains   the   $2,500   biennial   fee,                                                                    
     references the multiple  fixed counter endorsement, and                                                                    
     sets the  penalty for unauthorized  beverage dispensary                                                                    
     activity.  Sections in  current BDL  for bowling  alley                                                                    
     and  hotel  licensees   relocated  to  become  separate                                                                    
     endorsements. (Pages 11-12)                                                                                                
                                                                                                                                
     AS  04.09.210.  Restaurant  and eating  place  license.                                                                    
     Relocates license from 04.11.100,  sets biennial fee at                                                                    
     $1250,  defines the1:1  food to  alcohol ratio,  limits                                                                    
     the number of  annual allowed after-hours entertainment                                                                    
     events  to  six, defines  when  minors  can be  on  the                                                                    
     premises, and  sets penalty for failure  to comply with                                                                    
     license terms. (Pages 12-14)                                                                                               
                                                                                                                                
     AS  04.09.310.  Brewery  retail  license.  Creates  new                                                                    
     license type  based on  relocated existing  language in                                                                    
     AS  04.11.130  for   brewery  retail  activities,  sets                                                                    
     biennial fee  at $1,250, requires retail  license to be                                                                    
     adjacent  to manufacturing  location, and  sets penalty                                                                    
     for failure  to comply  with license terms.  (Pages 21-                                                                    
     22)                                                                                                                        
                                                                                                                                
     AS  04.09.320.  Winery   retail  license.  Creates  new                                                                    
     license  type   based  on   existing  language   in  AS                                                                    
     04.11.140 for  winery retail activities,  sets biennial                                                                    
     fee at  $1,000, requires retail license  to be adjacent                                                                    
     to manufacturing location,  defines sales volume limits                                                                    
     for cider  and mead  depending on alcohol  content, and                                                                    
     sets penalty for failure to  comply with license terms.                                                                    
     (Pages 22-23)                                                                                                              
                                                                                                                                
     AS  04.09.330. Distillery  retail license.  Creates new                                                                    
     license  type   based  on   existing  language   in  AS                                                                    
     04.11.170  for   distillery  retail   activities,  sets                                                                    
     biennial fee  at $1,250, requires retail  license to be                                                                    
     adjacent  to manufacturing  location, and  sets penalty                                                                    
     for failure to comply with license terms.(Pages 23-24)                                                                     
                                                                                                                                
     AS  04.09.340.  Beverage  dispensary  tourism  license.                                                                    
     Relocates  license  from   AS  04.11.400(d),  maintains                                                                    
     biennial  fee  at   $2,500,  maintains  exemption  from                                                                    
     number  of rooms  required for  renewing licenses,  and                                                                    
     sets  penalty  for   unauthorized  beverage  dispensary                                                                    
     activity. Other  language in AS  04.11.400(d) relocated                                                                    
     to Hotel or Motel Endorsement. (Pages 24-26)                                                                               
                                                                                                                                
     AS  04.09.350.  Seasonal  restaurant  or  eating  place                                                                    
     license.  Creates  new   license  type,  sets  biennial                                                                    
     license fee  at $1,250,  defines which  communities can                                                                    
     qualify for having this license  type, sets out formula                                                                    
     for   determining  number   of  allowed   licenses  per                                                                    
     community, and sets penalty for  failure to comply with                                                                    
     license terms. (Pages 26-28)                                                                                               
                                                                                                                                
     AS 04.09.360.  Winery direct shipment  license. Creates                                                                    
     new  license   type  authorizing  direct   to  consumer                                                                    
     (including online)  sales of wine for  in-state or out-                                                                    
     of-state  winery, sets  biennial license  fee at  $200,                                                                    
     directs  the  board  to  develop  an  application  form                                                                    
     specifically for this license,  prohibits sales by this                                                                    
     license type  to local option  areas, and  sets penalty                                                                    
     for failure  to comply  with license terms.  (Pages 28-                                                                    
     30)                                                                                                                        
                                                                                                                                
Mr. Jackson continued to speak to the sectional analysis:                                                                       
                                                                                                                                
     AS   04.09.370.  Unlicensed   retail  sale.   Relocates                                                                    
     existing  unlicensed  retail   sale  from  04.11.010and                                                                    
     maintains misdemeanor A penalty. (Page 30)                                                                                 
                                                                                                                                
Mr. Jackson addressed Article 5,  which defined the types of                                                                    
endorsements which could be added  to a license. He read the                                                                    
various possible  endorsements. He  noted that  all sections                                                                    
also   included  penalties   for  non-compliance   with  the                                                                    
endorsement.                                                                                                                    
                                                                                                                                
Mr. Jackson addressed  Article 6 which defined  the types of                                                                    
permits.   Most  of   the   sections   were  reordered   and                                                                    
reorganized. A  new section created a  package store tasting                                                                    
event permit.  The end of  article 6 included  penalties for                                                                    
failure to comply permit requirements.                                                                                          
                                                                                                                                
9:13:06 AM                                                                                                                    
                                                                                                                                
Mr. Jackson addressed Article 7 under the bill:                                                                                 
                                                                                                                                
     AS  04.09.750. Common  carrier  approval. Requires  the                                                                    
     board  to approve  a common  carrier  to transport  and                                                                    
     deliver  alcoholic beverages  to  consumers within  the                                                                    
     state  in  response to  a  consumer's  order, and  sets                                                                    
     requirements and penalties  for common carriers. (Pages                                                                    
     49-51)                                                                                                                     
                                                                                                                                
Mr. Jackson pointed out that  under Article 7 there were new                                                                    
penalties  related  to  licensing.  The  bill  maintained  a                                                                    
misdemeanor  penalty   for  the   license  and   permit  for                                                                    
possession  and sale  of  alcohol. There  were  a couple  of                                                                    
other  sections  that  were reordered  and  reorganized.  He                                                                    
noted that  under Section  14, there  were new  penalties of                                                                    
$250 for  violation that dealt  with the purchase  or barter                                                                    
of alcoholic beverages from a non-licensee.                                                                                     
                                                                                                                                
Mr. Jackson addressed a portion of the sectional analysis:                                                                      
                                                                                                                                
     Section  16:  Board  approval of  transfers.  Adds  new                                                                    
     subsections to AS  04.11.040 (d) and (e) to  make it aa                                                                    
     minor  offense  and  provide  for  a  penalty  for  the                                                                    
     unauthorized transfer of  an alcoholic beverage license                                                                    
     or permit. It is a violation. (Page 52)                                                                                    
                                                                                                                                
     Section  17:  Reports  required  of  limited  liability                                                                    
     organization. Adds new subsections  to AS 04.11.045 (c)                                                                    
     and  (d) to  set the  penalty for  failure to  report a                                                                    
     change  in member  interest or  manager at  a$250 fine.                                                                    
     (Page 53)                                                                                                                  
                                                                                                                                
     Section 18: Reports required  of corporations. Adds new                                                                    
     subsections  to AS  04.11.050 (c)  and (d)  to set  the                                                                    
     penalty  for  failure to  report  a  stock transfer  or                                                                    
     change of  officers or  board members  at a  $250 fine.                                                                    
     (Pages 53)                                                                                                                 
                                                                                                                                
     Section 19: Reports required  of partnerships. Adds new                                                                    
     subsections  to AS  04.11.055 (c)  and (d)  to set  the                                                                    
     penalty   for  failure   to   report   a  transfer   of                                                                    
     partnership interest or change  of general partner at a                                                                    
     $250 fine. (Page 53)                                                                                                       
                                                                                                                                
Mr. Jackson  addressed Section 20,  which was  reordered and                                                                    
dealt  with a  nonresident distiller  manufacturing license.                                                                    
Section 21 added  a new subsection to  maintain the existing                                                                    
misdemeanor  A  penalty.  He  noted   that  Section  22  was                                                                    
reordered. He spoke to the new concept in Section 23:                                                                           
                                                                                                                                
     Section  23: Application  for  new  license or  permit.                                                                    
     Amends AS  04.11.260 to  exempt winery  direct shipment                                                                    
     license from the application  process for other license                                                                    
     types, defined instead in AS 04.09.360(Page 55)                                                                            
                                                                                                                                
Mr. Jackson noted that Section 24 was reordered. He                                                                             
continued to address the sectional analysis:                                                                                    
                                                                                                                                
     Section  25:  Application  for renewal  of  license  or                                                                    
     permit.  Amends AS  04.11.270 to  exempt winery  direct                                                                    
     shipment  license  from  the renewal  process,  defined                                                                    
     instead in AS 04.09.360. (Page 56)                                                                                         
                                                                                                                                
     Section 26:  Application for transfer  of a  license to                                                                    
     another   person.   Amends    AS   04.11.280   to   add                                                                    
     endorsements  as transferrable  with  a license.  (Page                                                                    
     56)                                                                                                                        
                                                                                                                                
     Section 27: Adds a provision  for automatic transfer of                                                                    
     a REPL or  seasonal REPL license if the  board takes no                                                                    
     action within 90 days. (Pages 56-57)                                                                                       
                                                                                                                                
     Section 29:  Criminal justice information  and records.                                                                    
     Amends AS 04.11.295(c)(1)adds  reference to conditional                                                                    
     contractor's permit  to the definition  of "applicant."                                                                    
     (Page 58)                                                                                                                  
                                                                                                                                
     Section 30: Notice of  application. Adds new subsection                                                                    
     AS  04.11.310  (c)  to exempt  winery  direct  shipment                                                                    
     license from  notice requirements  that do  not pertain                                                                    
     to this type of license.(Page58)                                                                                           
                                                                                                                                
     Section 31: False statement on  application. Adds a new                                                                    
     subsection  to AS  04.11.315,  relocating AS  04.16.210                                                                    
     and defines the crime of  making false statements on an                                                                    
     application  as perjury,  with  the  existing felony  C                                                                    
     penalty defined in AS 11.56.200. (Page58)                                                                                  
                                                                                                                                
Mr. Jackson detailed that Section 32 was reordered, as was                                                                      
Section 33 through Section 36. He informed that Section 37                                                                      
was a new concept:                                                                                                              
                                                                                                                                
     Section 37:  Denial of license or  permit renewal. Adds                                                                    
     new subsection 04.11.330 (e) to  exempt a winery direct                                                                    
     shipment license from certain  provisions in the denial                                                                    
     of an application  section that do not  pertain to this                                                                    
     type of license.(Page 61)                                                                                                  
                                                                                                                                
Mr. Jackson noted that Section 38 through Section 44 were                                                                       
simply reordered.                                                                                                               
                                                                                                                                
9:16:19 AM                                                                                                                    
                                                                                                                                
Mr. Jackson addressed Section 45 on page 11 of the                                                                              
sectional analysis:                                                                                                             
                                                                                                                                
     Section 45:  Adds a new  subsection AS  04.11.395(b) to                                                                    
     allow the  board delegate authority to  the director to                                                                    
     impose conditions  or restrictions on any  permit other                                                                    
     than  a conditional  contractor's permit.  The director                                                                    
     reviews  permit applications  and  issues all  permits.                                                                    
     (Page 67)                                                                                                                  
                                                                                                                                
Mr. Jackson informed that Section 46 was reordered. He                                                                          
continued to address the sectional analysis:                                                                                    
                                                                                                                                
     Section   47:   Population   limitations.   Amends   AS                                                                    
     04.11.400(a)(duplicate  section),  to  edit  subsection                                                                    
     references,  adds new  population  limit of  1:9,000for                                                                    
     new manufacturer retail  licenses, adds licenses exempt                                                                    
     from  population   limits  and  exempts   local  option                                                                    
     populations  from calculations.  [Effective with  other                                                                    
     licensing changes, 1/1/2021] (Pages 68-70)                                                                                 
                                                                                                                                
     Section   48:  Population   limitations.  Repeals   and                                                                    
     reenacts AS  04.11.400(i) to list licenses  exempt from                                                                    
     population  limits, including  manufacturer (production                                                                    
     only)  licenses,   wholesale  licenses   and  currently                                                                    
     exempt   retail  licenses   that  primarily   cater  to                                                                    
     tourists and travelers. (Page70)                                                                                           
                                                                                                                                
     Section   49:   Population   limitations.   Amends   AS                                                                    
     04.11.400(k) to  edit reference to  beverage dispensary                                                                    
     license, allows  relocation of a package  store, lowers                                                                    
     borough threshold  population for  qualifying boroughs,                                                                    
     restricts number  of licenses eligible for  transfer to                                                                    
     those  exceeding population  limits and  defines number                                                                    
     of allowed  transfers by  city, not  borough.(Pages 70-                                                                    
     71)                                                                                                                        
                                                                                                                                
     Section  50:  Petition  for  additional  restaurant  or                                                                    
     eating  place  licenses  for  certain  local  governing                                                                    
     bodies. Adds new section AS  04.11.405 that gives first                                                                    
     class   cities,   home    rule   cities,   or   unified                                                                    
     municipalities the  ability to  petition the  board for                                                                    
     additional   restaurant   or  eating   place   licenses                                                                    
     allocated     to      their     jurisdiction.[Effective                                                                    
     immediately](Pages71-72)                                                                                                   
                                                                                                                                
Mr. Jackson informed that Section 51 through Section 54                                                                         
were reorganized. He spoke to Section 55 and Section 56:                                                                        
                                                                                                                                
     Section 55:  Person and  location. Amends  AS 04.11.430                                                                    
     to allow  licenses to be issued  to government entities                                                                    
     and tribal organizations.  Place residency requirements                                                                    
     on  corporations and  limited liability  organizations.                                                                    
     Adds  a  reference  to   endorsements  in  relation  to                                                                    
     information required,  including telephone  number, and                                                                    
    email address. [Effective immediately] (Pages73-74)                                                                         
                                                                                                                                
Mr. Jackson addressed Section 56:                                                                                               
                                                                                                                                
     Section  56: Prohibited  financial interest.  Amends AS                                                                    
     04.11.450(b)to clarify  that a wholesaler cannot  own a                                                                    
     manufacturer  license  or  a  retail  license,  removes                                                                    
     restrictions on manufacturers  owning a retail license,                                                                    
     and removes references to repealed licenses. (Page74)                                                                      
                                                                                                                                
Mr. Jackson noted that Section 57 was reorganized. He                                                                           
addressed Section 58 and Section 59:                                                                                            
                                                                                                                                
     Section  58: Prohibited  financial  interest. Adds  new                                                                    
     subsections   to  AS   04.11.450   (g-h)  to   restrict                                                                    
     manufacturers above  a certain annual  production level                                                                    
     from owning a wholesale  license or retail license, and                                                                    
     defines  thresholds  for  production by  product  type.                                                                    
     (Page75)                                                                                                                   
                                                                                                                                
     Section 59: Prior public  approval. Amends AS 04.11.460                                                                    
     to  exempt a  winery direct  shipment license  boundary                                                                    
     restrictions  that  do  not pertain  to  this  type  of                                                                    
     license. (Page75)                                                                                                          
                                                                                                                                
Mr. Jackson noted that Section 60 through Section 80 were                                                                       
all reorganized and re-worded. He addressed Chapter 16:                                                                         
                                                                                                                                
     Section  81: Hours  of sale  and  presence on  licensed                                                                    
     premises   (standard   closing    hours).   Amends   AS                                                                    
     04.16.010(c) to clarify the hours  that a person cannot                                                                    
     be  on   the  licensed  premises  outside   of  allowed                                                                    
     operating  hours  (8:00  a.m. to  5:00  a.m.)unless  to                                                                    
     conduct  business  with  the licensee,  maintenance  or                                                                    
     improvements  or  is the  holder  of  a common  carrier                                                                    
     license,  and  adds restaurant  endorsement  reference.                                                                    
     (Page 85)                                                                                                                  
                                                                                                                                
     Section  82: Hours  of sale  and  presence on  licensed                                                                    
     premises (standard closing  hours). Amends AS 04.16.010                                                                    
     to  add   new  a   penalty  section(e),  making   it  a                                                                    
     violation. (Page 85)                                                                                                       
                                                                                                                                
     Section   83:  Pricing   and  marketing   of  alcoholic                                                                    
     beverages.   Amends    AS   04.16.015(a)    to   exempt                                                                    
     manufacturer  and package  store sampling  endorsements                                                                    
     from  the  prohibition  on providing  alcohol  free  of                                                                    
     charge, and  defines a week  as seven days  for pricing                                                                    
    and marketing of alcoholic beverages. (Page 85-86)                                                                          
                                                                                                                                
     Section   84:  Pricing   and  marketing   of  alcoholic                                                                    
     beverages.  Amends   AS  04.16.015  by  adding   a  new                                                                    
     subsection (e)  to set the  penalty for  violating this                                                                    
     section as a violation. (Page 86)                                                                                          
                                                                                                                                
     Section  85: Trade  practices. Adds  a  new section  AS                                                                    
     04.16.017    to    specify   illegal    practices    by                                                                    
     manufacturers as  defined in  federal law,  and directs                                                                    
     the board  to adopt regulations defining  exceptions to                                                                    
     these  rules and  define  administrative penalties  for                                                                    
     violations.(Pages 86-88)                                                                                                   
                                                                                                                                
     Section  86:   Solicitation  of   alcoholic  beverages;                                                                    
     purchase on  behalf of another. Amends  AS 04.16.020 to                                                                    
     set   the    penalty($100   fine)    for   unauthorized                                                                    
     solicitation or  purchase of  alcoholic beverages.(Page                                                                    
     88)                                                                                                                        
                                                                                                                                
     Section  87:  Online  sale and  purchase  of  alcoholic                                                                    
     beverages. Adds a new  section AS 04.16.022 prohibiting                                                                    
     online  purchase and  sale to  Alaska consumers  unless                                                                    
     the licensee  has a winery  direct shipment  license or                                                                    
     package store shipping  endorsement and sets penalties.                                                                    
     (Page 88)                                                                                                                  
                                                                                                                                
9:20:59 AM                                                                                                                    
                                                                                                                                
Mr. Jackson continued to address the sectional analysis:                                                                        
                                                                                                                                
     Section  88:  Illegal  presence on  premises  involving                                                                    
     alcoholic  beverages.  Amends   AS  04.16.025(a)to  add                                                                    
     statutory  references to  all penalties  involving sale                                                                    
     without a license. (Pages88-89)                                                                                            
                                                                                                                                
     Section  89:  Prohibited  conduct relating  to  drunken                                                                    
     persons.  Amends   AS  04.16.030  to   change  existing                                                                    
     penalty for  prohibited conduct  relating to  a drunken                                                                    
     person,  adds  administrative  penalty to  licensee  if                                                                    
     employee is  convicted of a violation  of this section,                                                                    
     and   adds  misdemeanor   penalty   for  licensee   who                                                                    
     knowingly    allows   employees    to   violate    this                                                                    
     section.(Page89)                                                                                                           
                                                                                                                                
Mr. Jackson noted that Section 90 was reordered and                                                                             
reorganized. He addressed the sectional analysis:                                                                               
                                                                                                                                
     Section 91:  Possession of ingredients for  homebrew in                                                                    
     certain  areas. Adds  new subsections  to AS  04.16.035                                                                    
     (b-c)  to clarify  current  penalty  for possession  of                                                                    
     ingredients for homebrew. (Page89)                                                                                         
                                                                                                                                
     Section  92:  Access  of drunken  persons  to  licensed                                                                    
     premises.  Adds  new   subsections  to  AS  04.16.040to                                                                    
     relocate and  change the penalty for  prohibited access                                                                    
     by a drunken person. (Page 90)                                                                                             
                                                                                                                                
     Section  93:  Obligation  to  enforce  restrictions  in                                                                    
     licensed   premises.  Adds   new   subsections  to   AS                                                                    
     04.16.045  (b-c) to  relocate  and  change penalty  for                                                                    
     permitting consumption not  authorized under a license.                                                                    
     (Page 90)                                                                                                                  
                                                                                                                                
     Section  94:  Access  of persons  with  restriction  on                                                                    
     purchasing  alcohol.  Amends AS  04.16.047to  reference                                                                    
     the  existing penalty  for  entering  and remaining  on                                                                    
    licensed premises defined in AS 04.16.160.(Page 90)                                                                         
                                                                                                                                
Mr. Jackson highlighted that Section 95 though Section 98                                                                       
were reordered for organizational purposes. He addressed                                                                        
the sectional analysis:                                                                                                         
                                                                                                                                
     Section  99:   Furnishing  or  delivery   of  alcoholic                                                                    
     beverages to persons  under the age of  21. Repeals and                                                                    
     reenacts AS 04.16.051(d) to  define existing offense of                                                                    
     furnishing or delivering alcohol to a minor.(Page 92)                                                                      
                                                                                                                                
     Section  100:  Furnishing   or  delivery  of  alcoholic                                                                    
     beverages to  persons under  the age  of 21.Adds  a new                                                                    
     subsection  to   AS  04.16.051  (e)  to   relocate  the                                                                    
     existing C felony penalty  for furnishing or delivering                                                                    
     to  a  minor  by  a person,  for  situations  involving                                                                    
     serious  harm, repeat  offenses, and  if the  violation                                                                    
     occurs in a local option area. (Page 92)                                                                                   
                                                                                                                                
     Section  101:  Furnishing  of  alcoholic  beverages  to                                                                    
     person  under the  age of  21 by  licensees. Amends  AS                                                                    
     04.16.052to  change  the  penalties for  furnishing  or                                                                    
     delivering  alcohol  to  a  minor   by  a  licensee  or                                                                    
     employee,  adds administrative  penalty to  licensee if                                                                    
     an  employee  is  convicted  of  a  violation  of  this                                                                    
     section and shifts misdemeanor  penalty in AS 04.16.150                                                                    
     to  the  licensee  who knowingly  allows  employees  to                                                                    
     violate this section.(Pages 92-93)                                                                                         
                                                                                                                                
     Section  102: Room  rental  for  purposes of  consuming                                                                    
     alcoholic beverages. Amends  AS 04.16.055tomaintain the                                                                    
     current penalty  of class A  misdemeanor for  renting a                                                                    
     room for  the purpose of providing  alcoholic beverages                                                                    
     to a person under 21 years of age. (Page 93)                                                                               
                                                                                                                                
     Section  103:  Permitting  minor to  illegally  possess                                                                    
     liquor  in  a  dwelling.   Amends  AS  04.16.057(b)  to                                                                    
     maintain current  penalty as a violation  and adds $500                                                                    
     fine. (Page 93)                                                                                                            
                                                                                                                                
Mr. Jackson  noted that Section  104 was  reordered. Section                                                                    
105  was  a penalty  section  dealing  with purchase  by  or                                                                    
delivery to  persons under  the age of  21. Section  106 was                                                                    
reordered.  Section 107  was a  penalty  section that  dealt                                                                    
with consumption at school events.                                                                                              
                                                                                                                                
Mr. Jackson detailed that Section 108 was not highlighted                                                                       
in the sectional analysis; it was just a clarification. He                                                                      
continued to address the document:                                                                                              
                                                                                                                                
     Section  109: Prohibition  of  bottle  clubs. Adds  new                                                                    
     subsections to  AS 04.16.090 (d-e) to  define the crime                                                                    
     of maintaining  a bottle club, relocates  and maintains                                                                    
     current penalty. (Page 95)                                                                                                 
                                                                                                                                
     Section  110:  Sale   of  certain  alcoholic  beverages                                                                    
     prohibited.  Amends AS  04.16.110 to  define sale  of a                                                                    
     prohibited alcoholic beverage,  relocates and maintains                                                                    
     current penalty. (Page 95)                                                                                                 
                                                                                                                                
     Section  111:  Removal  or  introduction  of  alcoholic                                                                    
     beverages.  Amends AS  04.16.120 to  define removal  or                                                                    
     introduction of  alcoholic beverages, sets  penalty and                                                                    
     exemptions. (Page 95-96)                                                                                                   
                                                                                                                                
     Sections112-114:  Alcoholic  beverages  transported  by                                                                    
     common  carrier. Repeals  and reenacts  AS 04.16.125(a)                                                                    
     to allow  for delivery to a  person over the age  of 21                                                                    
     and adds  clarifying language to how  the delivery must                                                                    
     be   labeled.   Maintains  penalty   for   unauthorized                                                                    
     transportation   of  alcoholic   beverages  by   common                                                                    
     carrier   into   a   local  option   area   and   makes                                                                    
     noncompliance a violation. (Page 96)                                                                                       
                                                                                                                                
     Section 115: Stock confined  to licensed premises. Adds                                                                    
     a new subsection to AS  04.16.130 (c)to set the penalty                                                                    
     for unauthorized  storage of  alcoholic beverages  as a                                                                    
     violation. (Pages96-97)                                                                                                    
                                                                                                                                
     Section   116:  Sale   or   consumption  of   alcoholic                                                                    
     beverages in  a warehouse.  Amends AS 04.16.140  to add                                                                    
     sections  (b-c)  to  set   the  penalty  for  consuming                                                                    
     alcoholic  beverages in  a  warehouse  as a  violation.                                                                    
     (Page 97)                                                                                                                  
                                                                                                                                
     Section  117:  Licensee   responsible  for  violations.                                                                    
     Amends AS 04.16.150  to set the penalty  for failure to                                                                    
     ensure  compliance as  a violation.  (Page 97)  Section                                                                    
     118:  Restriction  on purchasing  alcoholic  beverages.                                                                    
     Amends  AS  04.16.160  to add  new  sections  (c-d)  to                                                                    
     maintain  existing  penalty   for  noncompliance  on  a                                                                    
     restriction for purchasing alcohol. (Page97)                                                                               
                                                                                                                                
9:24:07 AM                                                                                                                    
                                                                                                                                
Mr. Jackson continued to address the sectional analysis:                                                                        
                                                                                                                                
     Section 119:  Source of alcoholic beverages.  Amends AS                                                                    
     04.16.170  to exempt  winery  direct shipment  license,                                                                    
     maintains  penalties for  sale  of alcoholic  beverages                                                                    
     from or to an unlicensed person. (Page 97)                                                                                 
                                                                                                                                
     Section 120:  Source of alcoholic beverages.  Amends AS                                                                    
     04.16.170 to add new subsections  (c-d) to maintain the                                                                    
     existing penalty for violating  this section as class A                                                                    
     misdemeanor. (Page97)                                                                                                      
                                                                                                                                
     Section  121:  Restrictions  on purchase  and  sale  of                                                                    
     alcoholic  beverages. Amends  AS 04.16.172  to renumber                                                                    
     and a statutory reference to  the new license types and                                                                    
     maintains  current misdemeanor  A penalty  for licensee                                                                    
     obtaining  alcoholic   beverages  from   an  unlicensed                                                                    
     seller. (Pages 97-98)                                                                                                      
                                                                                                                                
     Section  122:  Restrictions  on purchase  and  sale  of                                                                    
     alcoholic  beverages. Amends  AS 04.16.172  to add  new                                                                    
     subsections (b-c) to  maintain the existing misdemeanor                                                                    
     A penalty for violating this section. (Page 98)                                                                            
                                                                                                                                
     Section 123:  Furnishing alcoholic beverages in  aid of                                                                    
     gambling  enterprise.  Amends  AS 04.16.175to  add  new                                                                    
     subsections  that maintain  the existing  misdemeanor A                                                                    
     penalty  for  the  crime  of  furnishing  an  alcoholic                                                                    
    beverage in aid of a gambling enterprise. (Page 98)                                                                         
                                                                                                                                
Mr. Jackson informed that Section 124 was reordered.                                                                            
Section 125 would add a definition for "conviction."                                                                            
                                                                                                                                
Mr. Jackson addressed Section 126:                                                                                              
                                                                                                                                
     Section  126:   Penalties  for  violation.   Amends  AS                                                                    
     04.16.180   to   add   new  subsections   (f-g),   adds                                                                    
     clarification   that    licensees   are    subject   to                                                                    
     administrative  penalties  imposed  by  the  board  for                                                                    
     violations of  AS 04.16.030 and AS  04.16.052, and adds                                                                    
     mitigating  circumstances  for licensees.  (Pages  126-                                                                    
     100)                                                                                                                       
                                                                                                                                
Mr. Jackson  relayed Section 127 through  130 were reordered                                                                    
and reorganized.                                                                                                                
                                                                                                                                
Mr.  Jackson   addressed  Section   131  in   the  sectional                                                                    
analysis:                                                                                                                       
                                                                                                                                
     Section  131:  Keg  registration. Adds  a  new  section                                                                    
     04.21.012  establishing  a   keg  registration  process                                                                    
     including    proof    of   age,    registration    form                                                                    
     requirements, identification tags,  and establishes the                                                                    
     penalties   for  possession   and  sale   of  alcoholic                                                                    
     beverages in an unregistered keg. (Pages 102-103)                                                                          
                                                                                                                                
Mr. Jackson  explained that Section 132  through Section 136                                                                    
were reordered.                                                                                                                 
                                                                                                                                
Mr.  Jackson noted  that  Section 136  also  included a  new                                                                    
concept:                                                                                                                        
                                                                                                                                
     Section  136: Alcohol  server education  course. Amends                                                                    
     section  AS 04.21.025(c)  to require  permittees (along                                                                    
     with  licensees, agents,  and  employees)  to take  and                                                                    
     pass an alcohol server  education course within 30 days                                                                    
     after   being   licensed,   permitted,   or   employed.                                                                    
     Additionally, a person may not  sell or serve alcoholic                                                                    
     beverages, or check  the ID of a patron  at a permitted                                                                    
     event  unless that  person  possesses  a valid  alcohol                                                                    
     server card. (Page 104)                                                                                                    
                                                                                                                                
Mr.  Jackson  summarized  that  Section  137  and  138  were                                                                    
reordered;  and  Section  137  had  a  small  penalty  piece                                                                    
defining the failure to comply  and setting the penalty as a                                                                    
violation.  He  continued that  Section  139  was a  penalty                                                                    
section   dealing   with   the  warehousing   of   alcoholic                                                                    
beverages, and Section 140 was reordered.                                                                                       
                                                                                                                                
Mr. Jackson referenced the sectional analysis:                                                                                  
                                                                                                                                
     Section  139:   Warehousing  of   alcoholic  beverages.                                                                    
     Amends AS 04.21.060 to add  a new subsection (b), which                                                                    
     define the  penalty of storing alcoholic  beverages and                                                                    
     sets it at a violation. (Page106)                                                                                          
                                                                                                                                
     Section  140: Posting  of  warning  signs. Repeals  and                                                                    
     reenacts  AS 04.21.065(a)  to  update  the license  and                                                                    
     permit types  required to post warning  signs, and adds                                                                    
     statutory references. (Pages106-107)                                                                                       
                                                                                                                                
     Section 141:  Fines and other criminal  penalties. Adds                                                                    
     a new section AS  04.21.072, 04.21.074, and 04.21.076to                                                                    
     set  penalties for  other  violations, misdemeanors  or                                                                    
     felonies,  unless  otherwise   specified.  Directs  the                                                                    
     supreme court  to establish a bail  schedule and places                                                                    
     requirements  on the  courts  for  suspending fines  or                                                                    
     imposition/execution of sentence. (Page 107)                                                                               
                                                                                                                                
Mr. Jackson  detailed that Section  142 through  Section 144                                                                    
were reordered.  Section 145 defined  some of the  new terms                                                                    
in the bill.                                                                                                                    
                                                                                                                                
Mr. Jackson spoke to the sectional analysis:                                                                                    
                                                                                                                                
     Section  156: Winery  direct  shipment tax;  statement;                                                                    
     audit.  Adds a  new section  AS 43.60.060  to establish                                                                    
     tax  collection on  direct wine  shipments from  out of                                                                    
     state  business  holding   this  license  and  outlines                                                                    
     requirements for the Department of Revenue. (Page 115)                                                                     
                                                                                                                                
Mr.  Jackson noted  that Section  157 and  Section 158  were                                                                    
reordered. He explained that the  last page of the sectional                                                                    
analysis  included transition  and effective  dates for  the                                                                    
legislation.                                                                                                                    
                                                                                                                                
Co-Chair  von  Imhof appreciated  the  color  coding on  the                                                                    
sectional analysis.                                                                                                             
                                                                                                                                
Senator Micciche  clarified that  the penalty  sections were                                                                    
highlighted,  and  few  had  been  changed.  He  thought  it                                                                    
mistakenly gave  the impression that  all the  penalties had                                                                    
been changed.                                                                                                                   
                                                                                                                                
Co-Chair  von Imhof  supposed that  that  amount of  magenta                                                                    
highlighted  on  the  document was  not  indicative  of  new                                                                    
penalties.                                                                                                                      
                                                                                                                                
Senator Micciche agreed.                                                                                                        
                                                                                                                                
Senator  Olson   asked  for  more   clarity  on   Article  7                                                                    
pertaining  to common  carriers.  He asked  how the  section                                                                    
pertained to 135 operators that were vital to rural travel.                                                                     
                                                                                                                                
9:29:06 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:33:34 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  von  Imhof  asked Senator  Olson  to  restate  his                                                                    
question.                                                                                                                       
                                                                                                                                
Senator Olson  referenced Article 7 and  common carriers. He                                                                    
asked if  small air  taxi operators (that  transported mail,                                                                    
food, and passengers) had weighed in on the bill.                                                                               
                                                                                                                                
Senator Micciche  deferred the question to  a consultant. He                                                                    
reminded that it was currently  a crime to transport alcohol                                                                    
to a dry community.                                                                                                             
                                                                                                                                
9:34:40 AM                                                                                                                    
                                                                                                                                
ANNA  BRAWLEY, AGNEW  BECK CONSULTING  (via teleconference),                                                                    
understood  that  alcohol  shipments were  illegal  for  the                                                                    
United  States  Mail Service.  She  used  the example  of  a                                                                    
winery in another  state, which would use a  carrier such as                                                                    
FedEx. She understood that contractors  of the United States                                                                    
Mail Service would also not deliver alcohol.                                                                                    
                                                                                                                                
Senator  Olson  clarified  that  his  question  was  if  135                                                                    
operators   had  been   consulted  on   the  bill   content,                                                                    
particularly with regard to the penalties.                                                                                      
                                                                                                                                
Mr. Brawley stated that the  operators were not contacted to                                                                    
her knowledge.                                                                                                                  
                                                                                                                                
Senator Olson shared that he  had grave concerns. He thought                                                                    
that  understanding the  penalties  was  very important  and                                                                    
thought the operators should weigh in on the subject.                                                                           
                                                                                                                                
9:36:33 AM                                                                                                                    
                                                                                                                                
Senator  Micciche  recalled   a  previous  conversation  and                                                                    
reminded that  there was no  existing system  that accounted                                                                    
for   the  sale   and  delivery   of   alcohol  in   Alaska,                                                                    
particularly  in dry  communities.  He  emphasized that  the                                                                    
bill did not change the  impacts on companies that could not                                                                    
legally  transport  alcohol.  He   asked  Senator  Olson  to                                                                    
consider the fact that the  bill provided a system for legal                                                                    
orders  from out  of state  to be  delivered to  communities                                                                    
that were not dry and were not local option communities.                                                                        
                                                                                                                                
Co-Chair von Imhof asked if  there were current penalties if                                                                    
an operator delivered alcohol to a dry community.                                                                               
                                                                                                                                
Senator  Micciche was  not prepared  to explain  the current                                                                    
penalties and  reiterated that it was  currently illegal and                                                                    
there  were  penalties  for  delivering  alcohol  to  a  dry                                                                    
community.                                                                                                                      
                                                                                                                                
Co-Chair von Imhof  assumed there was not  a current process                                                                    
by which alcohol  was delivered to a community  that was not                                                                    
dry.                                                                                                                            
                                                                                                                                
Senator Micciche answered in the affirmative.                                                                                   
                                                                                                                                
Co-Chair von  Imhof asked how  alcohol was delivered  to the                                                                    
communities.                                                                                                                    
                                                                                                                                
Senator Micciche deferred to Ms. Brawley.                                                                                       
                                                                                                                                
Ms. Brawley  understood that deliveries were  dependent upon                                                                    
whether a local option  community allowed for importation of                                                                    
alcohol.  She was  not familiar  with the  specific carriers                                                                    
that  were used  for package  store deliveries.  She thought                                                                    
UPS and  FedEx had  internal policies  and only  allowed for                                                                    
wine  delivery through  commercial  contracts. She  imagined                                                                    
that the  companies would have  internal policies  that were                                                                    
being followed.  She thought  some local  option communities                                                                    
had distribution  centers where alcohol would  be delivered,                                                                    
and the customer would pick it up.                                                                                              
                                                                                                                                
9:39:37 AM                                                                                                                    
                                                                                                                                
Senator Olson was not concerned  with major carriers such as                                                                    
UPS  and FedEx  or large  airports. He  was concerned  about                                                                    
carriers that were serving small  communities such as Koyuk,                                                                    
Shaktoolik and Diomede. He listed  Ravn Air, Bering Air, and                                                                    
Grant   Air;   and   expressed   concern   about   potential                                                                    
violations. He was concerned that  if one of a village's two                                                                    
carriers   received  a   violation,   it  would   jeopardize                                                                    
important passenger  and freight service to  the village. He                                                                    
thought  the bill  should stay  in  committee until  members                                                                    
heard   from   operators   or  the   Alaska   Air   Carriers                                                                    
Association.                                                                                                                    
                                                                                                                                
Co-Chair von  Imhof pondered the  committee's responsibility                                                                    
in  contacting  all  interested   parties  affected  by  the                                                                    
numerous bills the committee considered.  She wondered if it                                                                    
made sense to have  a conceptual amendment requiring letters                                                                    
to  be  sent  to  make  carriers aware  that  the  bill  was                                                                    
happening.  She questioned  if the  carriers  had a  problem                                                                    
with  being  regulated  via  provisions  of  the  bill.  She                                                                    
wondered about the outcome Senator Olson was looking for.                                                                       
                                                                                                                                
Senator Olson was  not certain where Co-Chair  von Imhof was                                                                    
coming from.  He thought  it was  too burdensome  to contact                                                                    
all carriers, but pointed out  that there was an association                                                                    
that  spoke on  behalf of  carriers. He  was asking  for the                                                                    
carriers or  the association  to weigh in  on the  issue. He                                                                    
thought   it  was   a  serious   issue  that   affected  his                                                                    
constituents.                                                                                                                   
                                                                                                                                
9:42:57 AM                                                                                                                    
                                                                                                                                
Senator Micciche  commented that bootlegging was  illegal in                                                                    
Alaska. He reiterated  that the bill simply set  up a common                                                                    
carrier approval  process so that  the individuals  would be                                                                    
trained on  the legal  delivery of  alcohol ordered  from in                                                                    
the state  or from  a winery  out of  state. He  thought the                                                                    
concerns being expressed  were in current law.  The bill set                                                                    
up a  system for  delivering alcohol to  areas where  it was                                                                    
legal.  He asserted  that  stakeholders  would be  contacted                                                                    
through the  regulation process. He reminded  that there was                                                                    
a region of  the state where alcohol was a  primary cause of                                                                    
issues.                                                                                                                         
                                                                                                                                
Co-Chair von Imhof thought Senator  Olson was trying to make                                                                    
the point  that there  could be added  burdensome activities                                                                    
for air  carriers. She thought  Senator Micciche had  made a                                                                    
good  point that  forthcoming  regulations were  potentially                                                                    
more of a concern than the bill itself.                                                                                         
                                                                                                                                
9:45:12 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:46:19 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair von Imhof  reminded that the issue at  hand was the                                                                    
weighing in of the Alaska Air Carriers Association.                                                                             
                                                                                                                                
Senator  Olson understood  that a  phone call  was made  and                                                                    
there did not  seem to be any changes  that would jeopardize                                                                    
the  air carrier  operator certificates  if the  legislation                                                                    
were to  pass. The issues  he had raised had  been addressed                                                                    
and he withdrew any objection to the legislation.                                                                               
                                                                                                                                
Senator Micciche  thought that Senator Olson  had brought up                                                                    
a  good  point.  He  noted  that the  bill  had  three  more                                                                    
committees to  go through. He  stated he  would specifically                                                                    
reach out to the Alaska  Air Carrier's Association to ensure                                                                    
it was  aware of the  changes. He reminded that  the changes                                                                    
in  the bill  were  there  to ensure  that  alcohol was  not                                                                    
delivered to minors.                                                                                                            
                                                                                                                                
Co-Chair  von  Imhof  clarified   that  the  Senate  Finance                                                                    
Committee  was  the  last  committee  the  bill  would  pass                                                                    
through before going to the other body.                                                                                         
                                                                                                                                
9:48:13 AM                                                                                                                    
                                                                                                                                
Senator  Bishop  addressed  a   new  fiscal  note  from  the                                                                    
Department of Commerce,  Community and Economic Development,                                                                    
OMB   Component    3119.   He   discussed    the   operating                                                                    
expenditures.  The  funding  source was  designated  general                                                                    
funds.                                                                                                                          
                                                                                                                                
Senator  Bishop noted  there was  a total  operating expense                                                                    
shown as  $241,000 for FY  21; $387,500 for FY  22; $254,300                                                                    
for FY  23; and $229,300  for FY 24  through FY 26.  He read                                                                    
portions  from the  analysis on  page 2  and page  3 of  the                                                                    
fiscal note:                                                                                                                    
                                                                                                                                
     This  bill  is  a  result  of  recommendations  from  a                                                                    
     five-year process initiated  by the  Alcoholic Beverage                                                                  
     Control   (ABC)  Board   to   improve  the   structure,                                                                    
     organization,   specific   policies,   and   associated                                                                    
     implementation issues in alcohol regulation.                                                                               
                                                                                                                                
     EXPENDITURES (in thousands)                                                                                                
                                                                                                                                
     The  liquor  licensing  functions of  the  Alcohol  and                                                                    
     Marijuana  Control Office  (AMCO) are  fully funded  by                                                                    
     program receipts from licensing fees.                                                                                      
                                                                                                                                
     Passage  of this  legislation will  start a  very short                                                                    
     year and  half for  AMCO and the  ABC Board  to prepare                                                                    
     for full  implementation. The  capacity of  the current                                                                    
     staffing  level   is  not  sufficient  to   manage  the                                                                    
     transition.  A  long-term  non-perm  Project  Assistant                                                                
     (range   16)  for   two  years   will   be  needed   to                                                                    
     successfully  prepare the  board, the  office, and  the                                                                    
     licensees  for  the   transition.  A  new  Occupational                                                                    
     Licensing Examiner  (range 14) is added  to assist with                                                                    
     license transitions,  ensuring that  normal application                                                                    
     review  that  is unrelated  to  the  transition is  not                                                                    
     slowed,  which would  negatively affect  applicants and                                                                    
     licensees.                                                                                                                 
                                                                                                                                
     Improved  enforcement   is  a   stated  goal   of  this                                                                    
     legislation. The  addition of a Special  Investigator I                                                                    
     position (range 19) starting in  FY2022 will enable the                                                                    
     ABC  Board  to  better  fulfill  its  responsibilities,                                                                    
     including   limiting  youth   access  to   alcohol  and                                                                    
     reducing the harms of overconsumption.                                                                                     
                                                                                                                                
     As a result of this  bill, regulations across 3 AAC 304                                                                    
     will need to be rewritten  by the ABC Board and adopted                                                                    
     by the effective date of January 1, 2022.                                                                                  
                                                                                                                                
Senator  Bishop commented  on  the  aggressive schedule  for                                                                    
proposed   changes,   which  necessitated   the   additional                                                                    
positions. He continued to read  portions of the analysis on                                                                    
page 2 of the fiscal note:                                                                                                      
                                                                                                                                
     The  aged  alcohol  licensing   database  needs  to  be                                                                    
     replaced with  licensing workflow/database  software to                                                                    
     comply  with data  collection, research,  and reporting                                                                    
     requirements.  The new  database is  estimated to  cost                                                                    
     $750.0  for  initial development,  implementation,  and                                                                    
     support  and maintenance.  A capital  appropriation for                                                                    
     the Alcohol and Marijuana  Control Office Licensing and                                                                    
     Enforcement  Solutions  Project   will  allow  AMCO  to                                                                    
     develop an alcohol licensing system  that will serve as                                                                    
     a comprehensive solution for  licensing. In addition to                                                                    
     being  a   fully-functioning licensing   software,  the                                                                  
     alcohol system  will replace the current  written order                                                                    
     database   for   mail-order  alcohol   purchases;   may                                                                  
     interface with the  existing marijuana licensing system                                                                    
     to provide  a comprehensive  view of  AMCO's licensees;                                                                    
     and  may  interface with  or  provide  for tracking  of                                                                    
     complaints   and   enforcement   actions   related   to                                                                    
     licensees. The project may be developed in-house or via                                                                  
     contract. The  capital appropriation is  anticipated to                                                                    
     be funded  by $100.0  general funds and  $650.0 alcohol                                                                    
     licensing  receipts,  which   will  be  collected  from                                                                    
     annual revenue  collections as  they are  available and                                                                    
     unused.                                                                                                                    
                                                                                                                                
Senator Bishop discussed the analysis on page 3 of the                                                                          
fiscal note:                                                                                                                    
                                                                                                                                
     2000 Travel                                                                                                                
     ?  Board  travel  costs for  four  additional  days  of                                                                    
     meetings:   $3.2/year   for   the   first   two   years                                                                    
     ($1.6/meeting day)                                                                                                         
     ? Local Government  Specialist travel for two-day trips                                                                  
     to each of the four judicial districts per year:                                                                           
          $5.6/year ($1.4/two-day trip)                                                                                       
        Travel for  new  Special  Investigator I  positions:                                                                    
     $10.0/year for each position                                                                                               
                                                                                                                                
     3000 Services                                                                                                              
     ? Attorney  review of  regulations: $12.0/year  in each                                                                    
     of the first two years (75 hours/year)                                                                                     
     ?   Printing,  design,   and   publication  costs   for                                                                    
     education   materials:   $10.0/year   in   FY2021   and                                                                    
     $34.0/year in FY2022                                                                                                       
     ?  Public  notice  advertisements:  $5.0/year  for  the                                                                    
     first two years                                                                                                            
     ? Postage: $1.0/year in FY2021 and $3.0/year in FY2022                                                                     
     ?   Statewide  core   services  and   allocated  costs:                                                                    
     $15.0/year per position                                                                                                    
                                                                                                                                
Senator Bishop mentioned an additional few thousand dollars                                                                     
in costs for setting up the new employees.                                                                                      
                                                                                                                                
9:53:08 AM                                                                                                                    
                                                                                                                                
Senator Bishop addressed a new fiscal note from the                                                                             
Department of Revenue, OMB Component 2476. He read from the                                                                     
analysis on page 2:                                                                                                             
                                                                                                                                
     Section 155 of  the bill would extend  the existing tax                                                                    
     on wine of  $2.50/gallon to holders of  a winery direct                                                                    
     shipment  license. The  winery direct  shipment license                                                                    
     is a  new license  type that would  be created  by this                                                                    
     bill.  Under  current   statutes,  direct  shippers  of                                                                    
     alcoholic  beverages  do  not  have  a  tax  filing  or                                                                    
     payment   obligation--currently, the   excise  tax   on                                                                  
     alcoholic  beverages is  paid only  by businesses  that                                                                    
     have a physical presence in the state.                                                                                     
                                                                                                                                
     The  Tax  Division  has consistently  collected  around                                                                    
     $2.4 million  in taxes  on wine  over the  past several                                                                    
     years.  Extending   the  tax  to   out-of-state, direct                                                                
     shippers of  wine would have  a positive effect  on tax                                                                    
     revenues. However, the Tax Division  does not have data                                                                    
     on direct  shipments of wine, therefore,  the change in                                                                    
     tax revenue is indeterminate.                                                                                              
                                                                                                                                
Senator  Bishop  addressed  a   new  fiscal  note  from  the                                                                    
Judiciary, OMB Component  768. He detailed that  there was a                                                                    
total  operating   appropriation  request  for  FY   21  was                                                                    
$38,500. He read from the analysis on page 2:                                                                                   
                                                                                                                                
     Senate  Bill  52  substantially  reorganizes  Title  4,                                                                    
     Alcohol Beverages,  by adding new  provisions, revising                                                                    
     existing provisions, and  reorganizing the Title around                                                                    
     chapters that  concern distinct aspects of  the alcohol                                                                    
     industry and its operations.                                                                                               
                                                                                                                                
     SB 52  also changes the penalty  category and specifies                                                                    
     an exact  penalty that must be  imposed upon conviction                                                                    
     for  many alcohol-related  offenses. Specifically,  the                                                                    
     bill  changes  about  63 offenses  that  are  currently                                                                    
     classified as  misdemeanors and would classify  them as                                                                    
     violations  instead.  Section  141  would  require  the                                                                    
     supreme court  to establish a schedule  of bail amounts                                                                    
     for the violations.                                                                                                        
                                                                                                                                
     The  court system's  current staff  does  not have  the                                                                    
     extra time or capacity  to undertake implementing SB 52                                                                    
     without  additional  resources.  To do  so,  the  court                                                                    
     system would  need to hire a  short-term staff attorney                                                                    
     in  the  administrative  office  to  prepare  the  bail                                                                    
     schedule, which is a  substantial undertaking that will                                                                    
     take  a significant  amount of  time. In  addition, the                                                                    
     attorney would  need to  draft instructions  for clerks                                                                    
     and judicial  officers, and work  with the IT  staff on                                                                    
     the  tasks related  to  re-classification of  offenses,                                                                    
     such  as developing  codes for  charging documents  and                                                                    
     entering into CourtView.                                                                                                   
                                                                                                                                
     The  court system  anticipates that  it will  need one-                                                                    
     time funds  for an  attorney to  be retained  for three                                                                    
     months during FY 21 to  accomplish the tasks related to                                                                    
     implementation  of Senate  Bill  52.  The court  system                                                                    
     therefore submits this fiscal note for that one-time                                                                       
     expense of $38,500 to fund that position.                                                                                  
                                                                                                                                
Co-Chair von Imhof opened PUBLIC TESTIMONY.                                                                                     
                                                                                                                                
9:57:50 AM                                                                                                                    
                                                                                                                                
SARAH   OATES,  ALASKA   CABARET,   HOTEL,  RESTAURANT   AND                                                                    
RETAILERS   ASSOCIATION,  ANCHORAGE   (via  teleconference),                                                                    
spoke  in  favor  of  the   bill.  She  explained  that  the                                                                    
association   had  entered   the   ninth   year  of   robust                                                                    
stakeholder  work   toward  meaningful   alcohol  regulatory                                                                    
reform.  She detailed  that CHARR  and  the Alaska  Brewer's                                                                    
Guild  had   met  throughout  2019   to  discuss   the  most                                                                    
contentious sections  of Title 4, which  had caused previous                                                                    
iterations  of the  bill  to stall  out  in the  legislative                                                                    
process.  She thought  consensus  had  been reached  between                                                                    
multiple parties and all three  industry tiers. She spoke to                                                                    
facets  of the  bill. She  had worked  with the  Alcohol and                                                                    
Marijuana  Control Office  (AMCO)  for 7.5  years. While  at                                                                    
AMCO  she had  participated in  the stakeholder  group as  a                                                                    
subject matter expert and had  recommended changes that were                                                                    
incorporated in  the bill.  She requested  on behalf  of the                                                                    
Alaska Cabaret, Hotel,  Restaurant and Retailers Association                                                                    
(CHARR)  that the  committee pass  an  amendment to  clarify                                                                    
entertainment  activities and  operating  hours. She  stated                                                                    
that CHARR offered its full support with the changes.                                                                           
                                                                                                                                
10:00:01 AM                                                                                                                   
                                                                                                                                
MIKE  ABBOT,  CEO,  ALASKA  MENTAL  HEALTH  TRUST  AUTHORITY                                                                    
(AMHTA),  ANCHORAGE (via  teleconference), spoke  in support                                                                    
of the bill.  He noted that the trust had  been working as a                                                                    
stakeholder in  the process to develop  the legislation over                                                                    
several  years.  The trust  continued  to  believe that  its                                                                    
beneficiaries  were better  off with  the legislation  being                                                                    
enacted.  He  thought  the bill  had  many  positive  public                                                                    
health and  public safety impacts,  which was why  the trust                                                                    
recommended the  adoption of  the bill  in a  timely fashion                                                                    
during legislative session.                                                                                                     
                                                                                                                                
10:01:33 AM                                                                                                                   
                                                                                                                                
TIFFANY    HALL,    RECOVER     ALASKA,    ANCHORAGE    (via                                                                    
teleconference),  spoke in  support of  the bill.  She noted                                                                    
that  Recover  Alaska was  an  organization  that worked  to                                                                    
reduce  excessive  alcohol  use  and its  harms  across  the                                                                    
state. Her organization  had been working on  the content of                                                                    
the  bill for  eight or  nine  years. She  commented on  the                                                                    
state's problems  caused by alcohol. She  cited that alcohol                                                                    
cost  the state  $2.4 billion  per year;  and that  Alaskans                                                                    
were dying  at rates three  times the national  average. She                                                                    
appreciated  that  the  bill would  limit  youth  access  to                                                                    
alcohol.  She  liked the  regulation  of  internet sales  of                                                                    
alcohol as  proposed in  the bill.  She like  the provisions                                                                    
for statewide keg registration  and mandatory trainings. She                                                                    
appreciated changes to penalties  for overserving or serving                                                                    
of minors. She thought the  bill closed the current loophole                                                                    
on population limits. She thought  the entire bill clarified                                                                    
Title   4.  She   commended  the   stakeholder  groups   for                                                                    
compromising  on areas  of  the  bill to  allow  it to  move                                                                    
forward.  She  acknowledged  that there  were  other  issues                                                                    
related to alcohol that were  not addressed in the bill, but                                                                    
understood it was critical to  have compromise with the many                                                                    
stakeholders.                                                                                                                   
                                                                                                                                
10:05:29 AM                                                                                                                   
                                                                                                                                
BETH MCEWEN,  SELF, JUNEAU,  spoke in  support of  the bill.                                                                    
She was the  municipal clerk for the City of  Juneau and had                                                                    
served  on  the stakeholder's  task  force  group since  the                                                                    
inception of the  bill. She thought the bill  reached a good                                                                    
compromise.  She  supported  the  bill  and  encouraged  its                                                                    
passage.                                                                                                                        
                                                                                                                                
Co-Chair von Imhof CLOSED public testimony.                                                                                     
                                                                                                                                
10:06:56 AM                                                                                                                   
                                                                                                                                
Co-Chair von Imhof wanted to consider amendments.                                                                               
                                                                                                                                
Senator Bishop clarified  that the new fiscal  note from the                                                                    
Judiciary  (OMB Component  768) still  stood. He  noted that                                                                    
the  Statement  of Zero  Fiscal  Impact  indicated that  the                                                                    
Department of  Commerce, Community and  Economic Development                                                                    
and the  Department of  Health and  Social Services  did not                                                                    
anticipate any fiscal impact for FY 21 through FY 26.                                                                           
                                                                                                                                
10:08:06 AM                                                                                                                   
                                                                                                                                
Senator Bishop MOVED to ADOPT Amendment 1.                                                                                      
                                                                                                                                
Co-Chair von Imhof OBJECTED for discussion.                                                                                     
                                                                                                                                
Co-Chair von  Imhof explained that  the amendment  would add                                                                    
concepts that had been vetted  and approved by the committee                                                                    
and  the Senate  the previous  session in  another piece  of                                                                    
legislation  but had  been removed  in the  other body.  The                                                                    
amendment related  to music festival permits  and the number                                                                    
of special permit events a non-profit could host each year.                                                                     
                                                                                                                                
Senator  Bishop   relayed  that  a  music   festival  permit                                                                    
authorized  the  holder  of a  restaurant  or  eating  place                                                                    
license to sell  beer and wine at a music  festival held off                                                                    
the  license  holder's  premises.  A permit  could  only  be                                                                    
issued in  the unorganized borough,  one time per  year, not                                                                    
to exceed four days for  music festivals that had existed at                                                                    
the  same   location  for  at   least  10  years   prior  to                                                                    
application.  The special  events  permit  would allow  non-                                                                    
profits to host  up to 10 special events,  while current law                                                                    
only allowed for 5. He used  the example of the Veteran's of                                                                    
Foreign Wars.                                                                                                                   
                                                                                                                                
Co-Chair von  Imhof understood that  Senator Bishop  and his                                                                    
staff  had  worked  with  the   stakeholders  on  the  music                                                                    
festival  language,  and  there  was no  opposition  to  the                                                                    
amendment.                                                                                                                      
                                                                                                                                
Senator Micciche  did not  think the  amendment had  a major                                                                    
impact and  was specific  to an event  that occurred  in one                                                                    
location where  the logistics were  challenging. He  did not                                                                    
have an objection to the amendment.                                                                                             
                                                                                                                                
Co-Chair von  Imhof WITHDREW her  objection. There  being NO                                                                    
further  OBJECTION,  it  was so  ordered.  Amendment  1  was                                                                    
ADOPTED.                                                                                                                        
                                                                                                                                
10:11:09 AM                                                                                                                   
                                                                                                                                
Senator Bishop MOVED to ADOPT Amendment 2.                                                                                      
                                                                                                                                
Co-Chair von Imhof OBJECTED for discussion.                                                                                     
                                                                                                                                
Co-Chair von  Imhof explained that the  amendment related to                                                                    
large  resort  license  holders  and  would  simply  clarify                                                                    
language  to  better  describe  what  was  intended  by  the                                                                    
section. The  section allowed a  customer at a  large resort                                                                    
to take a glass of wine  from the fire pit to the customer's                                                                    
room.  The amendment  had been  vetted  by stakeholders  and                                                                    
there had been no objection.                                                                                                    
                                                                                                                                
Senator Micciche  spoke to the  amendment, which  he thought                                                                    
met the intent of the bill.  He asserted that the purpose of                                                                    
the bill  was for  common sense and  eliminating unnecessary                                                                    
obstacles   to  reasonable   behavior.   He  supported   the                                                                    
amendment.                                                                                                                      
                                                                                                                                
Co-Chair von  Imhof WITHDREW her  objection. There  being NO                                                                    
further OBJECTION, it was so ordered.                                                                                           
                                                                                                                                
10:12:29 AM                                                                                                                   
                                                                                                                                
Senator Bishop MOVED to ADOPT Amendment 3.                                                                                      
                                                                                                                                
Co-Chair von Imhof OBJECTED for discussion.                                                                                     
                                                                                                                                
Senator  Micciche  explained  that  the  amendment  was  the                                                                    
"grand compromise"  that brought the three  parties together                                                                    
in  support of  the  bill. The  amendment  would change  the                                                                    
population and limits on manufacturers  from 1 in 9,000 to 1                                                                    
in  12,000.  The  amendment would  grandfather  in  existing                                                                    
manufacturing  facilities, and  changed the  operating hours                                                                    
of  tasting  rooms from  8  o'clock  to  10 o'clock  in  the                                                                    
evening. The  amendment allowed  for some  entertainment and                                                                    
allowed   for  events   per  year   (such  as   a  concert).                                                                    
Fundraisers would also be allowed.  He thought the amendment                                                                    
allowed for  manufacturers with tasting rooms  to more fully                                                                    
utilize facilities.  He asserted that the  amendment met the                                                                    
concerns  of CHARR.  He strongly  commended the  parties for                                                                    
coming  together   on  the   amendment.  He   supported  the                                                                    
amendment.                                                                                                                      
                                                                                                                                
Co-Chair von  Imhof WITHDREW her  objection. There  being NO                                                                    
further  OBJECTION,  it  was so  ordered.  Amendment  3  was                                                                    
ADOPTED.                                                                                                                        
                                                                                                                                
10:14:16 AM                                                                                                                   
                                                                                                                                
Senator Wilson MOVED to ADOPT Amendment 4.                                                                                      
                                                                                                                                
Co-Chair von Imhof OBJECTED for discussion.                                                                                     
                                                                                                                                
Senator Wilson  explained that the bill  would remove public                                                                    
convenience licenses  and replaced  them with a  process for                                                                    
municipalities   to  petition   the  ABC   Board  to   issue                                                                    
additional licenses above and  beyond the population limits.                                                                    
The  amendment would  amend the  proposed  changes to  allow                                                                    
local government  positions to add restaurant  licenses. The                                                                    
amendment would  allow cities to  petition for  more package                                                                    
store licenses  and would remove  the necessity  for proving                                                                    
the population served by the city.                                                                                              
                                                                                                                                
Senator  Wilson  continued  to  address  the  amendment  and                                                                    
discussed  package  stores.  He   explained  that  the  only                                                                    
municipalities  able to  petition for  additional restaurant                                                                    
licenses were  first class cities, home  rule municipalities                                                                    
and boroughs.  He mentioned  commercial centers.  He thought                                                                    
it  made  sense to  allow  busines  to expand  within  their                                                                    
jurisdictions  with police  powers and  zonings rather  than                                                                    
outside  city   limits.  He  thought  the   amendment  would                                                                    
encourage package stores to operate within city limits.                                                                         
                                                                                                                                
Senator Wilson  spoke to population limits  and the petition                                                                    
process. He  thought population limits were  ineffective and                                                                    
that  there  was   no  way  to  account   for  a  population                                                                    
surrounding  an area  that utilized  a municipal  center. He                                                                    
thought the  working group had acknowledged  that population                                                                    
limits  would  likely  be inaccurate  through  the  petition                                                                    
process.  He quoted  the  task  force's recommendations  for                                                                    
statute  change.  He  used  the example  of  a  person  that                                                                    
participated  in  economic  activities  in  three  different                                                                    
cities  in the  Mat-Su  area in  one day.  He  thought if  a                                                                    
municipality  had  the  capacity  to  deal  with  additional                                                                    
licenses, it  should be  able to do  so. He  supported local                                                                    
control of  a municipality driving its  own economic future.                                                                    
He asked for support for the amendment.                                                                                         
                                                                                                                                
10:17:53 AM                                                                                                                   
                                                                                                                                
Co-Chair  von Imhof  asserted  that  population limits  were                                                                    
addressed  in  the bill,  and  referenced  slide 21  of  the                                                                    
presentation at  the previous  bill hearing.  She referenced                                                                    
page 66  of the Alaska  Title 4 Review. She  understood that                                                                    
the  collaborative  effort  of the  major  stakeholders  had                                                                    
addressed population  centers. She  asked if  Senator Wilson                                                                    
had  vetted the  amendment with  the Brewer's  Guild, CHARR,                                                                    
and DHSS.                                                                                                                       
                                                                                                                                
Senator Wilson asserted that the  three entities listed were                                                                    
not the only stakeholders.  He considered municipalities and                                                                    
communities  were major  stakeholders.  He stated  he had  a                                                                    
draft letter  of support from  the Alaska  Municipal League.                                                                    
He discussed  population surveys. He thought  signatures had                                                                    
been de-validated  in the  City of  Soldotna. He  cited that                                                                    
there were  more people that  worked in the City  of Wasilla                                                                    
than lived in the city.  He mentioned a food security issue.                                                                    
He was concerned with economic growth.                                                                                          
                                                                                                                                
10:20:48 AM                                                                                                                   
                                                                                                                                
Senator  Micciche  stated  that the  municipalities  were  a                                                                    
valuable part  of the stakeholder's process  that had worked                                                                    
on  the bill.  He  discussed population  counts and  alcohol                                                                    
licensing and  did not  see an issue.  The bill  allowed for                                                                    
petition for  additional licenses.  He thought  there needed                                                                    
to  be  sound systems  in  place.  He  noted that  the  bill                                                                    
allowed for petition pertaining  to the seasonal increase in                                                                    
population.  He  referenced Senator  Wielechowski's  earlier                                                                    
comments on  dip netters.  He thought  the bill  contained a                                                                    
viable compromise.                                                                                                              
                                                                                                                                
Senator  Micciche continued  to  address  the amendment.  He                                                                    
thought the  legislature should not be  driving policy based                                                                    
on one potential  business that might be moving  to an area.                                                                    
He  thought  there  were adequate  processes  in  place.  He                                                                    
supported   the  bill's   expansion  of   the  ability   for                                                                    
municipalities to have some control of additional licenses.                                                                     
                                                                                                                                
10:23:38 AM                                                                                                                   
                                                                                                                                
Co-Chair von  Imhof agreed that  the issue had  already been                                                                    
vetted.  The  issue  had been  presented  to  the  committee                                                                    
during the bill presentation,  and she felt comfortable with                                                                    
the level  of addressing  the topic  and the  flexibility in                                                                    
the bill.                                                                                                                       
                                                                                                                                
Co-Chair von Imhof MAINTAINED her objection.                                                                                    
                                                                                                                                
Senator Wilson could  name 8 businesses that  wanted to move                                                                    
to a growing area of the state.                                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Hoffman, Wilson                                                                                                       
OPPOSED: Bishop, Wielechowski, von Imhof                                                                                        
                                                                                                                                
The MOTION FAILED (2/3).                                                                                                        
                                                                                                                                
10:25:04 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:25:29 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
Senator Wilson MOVED to ADOPT Amendment 5.                                                                                      
                                                                                                                                
Co-Chair von Imhof OBJECTED for discussion.                                                                                     
                                                                                                                                
Senator Wilson  spoke to  the amendment.  He noted  that the                                                                    
current  bill  had  a  three-year  cooling  off  period  for                                                                    
municipalities  if   granted  extra  licenses   through  the                                                                    
petition process. The amendment  proposed to have a one-year                                                                    
cooling off period.  If a city petitioned  for five licenses                                                                    
and  was only  granted  one, the  cooling  off period  would                                                                    
apply  to the  other  four license.  He  thought a  one-year                                                                    
period would give a community  to adjust to new licenses and                                                                    
allow it  to accommodate for dynamic  population changes. He                                                                    
thought the  amendment proposed a  more moderate  change and                                                                    
would improve the petition process.                                                                                             
                                                                                                                                
Co-Chair  von  Imhof asked  if  Senator  Micciche wanted  to                                                                    
comment on the amendment.                                                                                                       
                                                                                                                                
10:27:02 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:27:57 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
Senator Wilson  thought that it  was necessary to  have more                                                                    
time  to  talk with  other  members  and share  history  and                                                                    
information on  the topic of  the amendment. He  would offer                                                                    
the amendment at a later time and date.                                                                                         
                                                                                                                                
Senator  Wilson   WITHDREW  Amendment  5.  There   being  NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
Senator Bishop had not heard  all of the questions regarding                                                                    
Amendment 1. He wanted to  comment that he had contacted all                                                                    
the  stakeholders   and  the  groups  were   fine  with  the                                                                    
amendment.                                                                                                                      
                                                                                                                                
Co-Chair  von  Imhof  asked  for  agency  commentary  as  to                                                                    
whether the adopted amendments  would necessitate a revision                                                                    
in the fiscal notes.                                                                                                            
                                                                                                                                
10:29:23 AM                                                                                                                   
                                                                                                                                
GLEN  KLINKHART,  INTERIM  DIRECTOR, ALCOHOL  AND  MARIJUANA                                                                    
CONTROL  OFFICE,  DEPARTMENT   OF  COMMERCE,  COMMUNITY  AND                                                                    
ECONOMIC  DEVELOPMENT (via  teleconference),  did not  think                                                                    
that the  adopted amendments would  be cause for  changes in                                                                    
the fiscal note.                                                                                                                
                                                                                                                                
10:30:03 AM                                                                                                                   
                                                                                                                                
NANCY   MEADE,  GENERAL   COUNSEL,   ALASKA  COURT   SYSTEM,                                                                    
testified  that the  amendments would  not cause  changes to                                                                    
the fiscal note.                                                                                                                
                                                                                                                                
10:30:23 AM                                                                                                                   
                                                                                                                                
MATT  DAVIDSON,   PROGRAM  OFFICER,  DIVISION   OF  JUVENILE                                                                    
JUSTICE, DEPARTMENT OF HEALTH  AND SOCIAL SERVICES, informed                                                                    
that the amendments  would not have an impact  on the fiscal                                                                    
notes.                                                                                                                          
                                                                                                                                
10:30:48 AM                                                                                                                   
                                                                                                                                
BRANDON  SPANOS, DEPUTY  DIRECTOR, TAX  DIVISION, DEPARTMENT                                                                    
OF REVENUE, testified  that there would be no  change to the                                                                    
fiscal note.                                                                                                                    
                                                                                                                                
Co-Chair von  Imhof stated  that it had  been her  intent to                                                                    
move the bill from committee.  The bill still needed to pass                                                                    
through the other body. She  wanted a quick discussion about                                                                    
member's comfort level with moving the bill.                                                                                    
                                                                                                                                
10:31:33 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:31:55 AM                                                                                                                   
REVONV                                                                                                                          
                                                                                                                                
Co-Chair von Imhof remarked that  the bill had been a multi-                                                                    
year process.  The concepts in  the bill had been  vetted by                                                                    
the  committee in  previous legislation.  The bill  had been                                                                    
vetted  by  many  stakeholders in  collaboration  over  many                                                                    
years.   She   mentioned   some   stakeholders.   She   felt                                                                    
comfortable moving the bill from committee.                                                                                     
                                                                                                                                
Senator  Bishop   MOVED  to  report  CSSB   52(FIN)  out  of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSSB  52(FIN) was  REPORTED out  of committee  with two  "do                                                                    
pass"     recommendations,    two     "no    recommendation"                                                                    
recommendations,  and one  "amend" recommendation;  and with                                                                    
one new fiscal impact note  from the Department of Commerce,                                                                    
Community  and   Economic  Development,   one  indeterminate                                                                    
fiscal  note  from the  Department  of  Revenue, one  fiscal                                                                    
impact note  from the Judiciary,  and one statement  of zero                                                                    
fiscal impact for the Department  of Commerce, Community and                                                                    
Economic  Development  and  the  Department  of  Health  and                                                                    
Social Services.                                                                                                                
                                                                                                                                
ADJOURNMENT                                                                                                                   
10:33:26 AM                                                                                                                   
                                                                                                                                
The meeting was adjourned at 10:33 a.m.                                                                                         

Document Name Date/Time Subjects
SB 52 Public Testimony Girdwood Brewing Company.pdf SFIN 2/19/2020 9:00:00 AM
SB 52
SB 52 Public Testimony Darwin's Theory.pdf SFIN 2/19/2020 9:00:00 AM
SB 52
SB 52 Public Testimony The Banks Alehouse.pdf SFIN 2/19/2020 9:00:00 AM
SB 52
SB 52 Public Testimony Devil's Club Brewing Co..pdf SFIN 2/19/2020 9:00:00 AM
SB 52
SB 52 Public Testimony Alaska Cache Liquor.pdf SFIN 2/19/2020 9:00:00 AM
SB 52
SB 52 v.K Amendments SFIN 2020 #1-5.pdf SFIN 2/19/2020 9:00:00 AM
SB 52
SB 52 Public Testimony Cynosure Brewing.pdf SFIN 2/19/2020 9:00:00 AM
SB 52