HB 68-ALCOHOL: SALE, WARNING SIGNS  3:40:57 PM CHAIR MINA announced that the final order of business would be HOUSE BILL NO. 68, "An Act relating to the sale of alcohol; and relating to the posting of warning signs for alcoholic beverages." 3:41:20 PM REPRESENTATIVE FIELDS, as prime sponsor, presented HB 68. Briefly touching on points from the sponsor statement [included in the committee file], he noted that HB 68 mirrors legislation that was vetoed last year by the governor for having passed "two minutes after the midnight hour" [of the last day of session]. He said this legislation is broadly supported. It would allow individuals under the age of 21 to serve alcohol, which has been requested by restaurants and many in the hospitality industry. The bill would maintain the warning signs that alcohol can cause cancer. Further, it would address a license type for the Alyeska Resort and cut red tape for the Performing Arts Center in Anchorage, which would loosen restrictions on serving alcohol. He noted that currently the companion bill, sponsored by Senator Merrick, is in its third reading on the Senate floor. 3:43:44 PM EVAN ANDERSON, Staff, Representative Zack Fields, Alaska State Legislature, on behalf of Representative Fields, prime sponsor, gave the sectional analysis for HB 68 [included in the committee file], which read as follows [original punctuation provided]: Section 1. Amends AS 04.09.210(c) - Restaurant or eating place license Allows the board to issue or renew a license if there is supervision on the premises to ensure that those under 21 will not obtain alcoholic beverages except if they are employed per new AS 04.09.049(d). Section 2. Amends AS 04.09.210(d) - Restaurant or eating place license Authorizes the license holder to employ those aged 16 to 21 years but requires adequate supervision to employees who are 16 or 17 years of age, so they do not obtain alcoholic beverages. Section 3. Amends AS 04.09.250(c) Theater license Expands the time period in which a theater license holder may sell or serve alcoholic beverages in designated areas. Removes intermission language. Section 4. Amends AS 04.09.360(c) Seasonal restaurant or eating place tourism license Allows the board to issue or renew a license if there is supervision on the premises to ensure that those under 21 will not obtain alcoholic beverages except if they are employed per new AS 04.09.049(d). Section 5. Amends AS 04.09.360(f) Seasonal restaurant or eating place tourism license Authorizes the license holder to employ those aged 16 to 21 years but requires adequate supervision to employees who are 16 or 17 years of age, so they do not obtain alcoholic beverages. Section 6. Amends AS 04.09.450(d) Restaurant endorsement Allows the board to issue an endorsement if there is supervision on the premises to ensure that those under 21 will not obtain alcoholic beverages except if they are employed per new AS 04.09.049(d). Prepared by the Office of Representative Fields 2 Section 7. Amends AS 04.09.450(e) Restaurant endorsement Authorizes the license holder to employ those aged 16 to 21 years but requires adequate supervision to employees who are 16 or 17 years of age, so they do not obtain alcoholic beverages. Section 8. Amends AS 04.16.049(d) Access of persons under the age of 21 to licensed premises: Allows those who are aged 18, 19, or 20 employed by a licensee to serve, sell, deliver, and dispense alcoholic beverages. Adds "and, other than for the business that offers adult entertainment" to ensure that adult entertainment establishments are excluded. Section 9. Amends AS 04.16.049(h) Access of persons under the age of 21 to licensed premises: Allows those under the age of 21 to be present on the licensed premises of a theater license holder if the person is at least 16 years of age; if they are under 16, they must be accompanied by a person who is at least 21 years of age, and a parent or legal guardian of the underaged person consents. Section 10. Amends AS 04.16.052(a) Furnishing of alcoholic beverages to persons under the age of 21 by licensees: Allows licensees or an agent or employee of the license to allow another person to sell, barter, or give an alcoholic beverage to a person under the age of 21 years only under the provisions in AS 04.16.049(d). Section 11. Amends 04.21.065(b) Posting of warning signs Requires that vendors of alcohol replace their sign that reads: "WARNING: Drinking alcoholic beverages such as beer, wine, wine coolers, and distilled spirits or smoking cigarettes during pregnancy can cause birth defects." with a new sign that reads: "WARNING: Alcohol use during pregnancy can cause birth defects. Alcohol use can cause cancer, including breast and colon cancers." Section 12. Amends 04.21.080 Definitions Adds paragraph (31) to read "business that offers adult entertainment" has the meaning given in AS 23.10.350(f). Section 13. Repeals AS 04.09.250(d) - Theater license Repeals the provision that prohibits the sale, service, and consumption of alcoholic beverages in the audience viewing area of a theater. 3:47:21 PM SARAH OATES-HARLOW, President/CEO, Alaska Cabaret, Hotel, Restaurant, and Retailers Association (CHARR), testifying in support of HB 68, gave a brief background regarding Alaska CHARR and the hospitality industry in Alaska, including ongoing challenges, such as increasing workforce shortages. She noted that Alaska is one of only three states, along with Utah and Nevada, that require a person to be 21 years of age or older to serve alcohol. The industry is experiencing an outmigration of young workers. She related her choice to remain in the Pacific Northwest in the hospitality industry rather than returning home to Alaska because she could make significantly more as a server out of state, earning six figures Outside. She said HB 68 would help hundreds of Alaska-owned establishments statewide, and she requested that the committee support the bill with an immediate effective date. 3:50:28 PM DAVID MCCARTHY, Founder/CEO, Northern Hospitality Group, noted the establishments under the umbrella of the group and suggested that HB 68 could be a solution to Alaska's labor shortages. More importantly, he suggested, concerns about [allowing younger staff to serve alcohol] are already addressed through existing systems and policies. He assured the committee that no one under 21 is allowed to consume alcohol on premise. If the bill were to pass, those 18 to 21 would be educated on the issue. He posited that hospitality is "a noble career path" and the service of others is important "to build a healthy and sustainable community." He offered further details to that effect. He noted that there are few industries outside of hospitality that allow for such flexibility and wage potential, and he reported that one in three start jobs are in the industry. He concluded by stating his strong support for HB 68. 3:55:00 PM CODIE COSTELLO, President/COO, Performing Arts Center (PAC);, General Manager, Broadway Alaska, testified in support of HB 68. She gave an overview of the offerings of the organizations with which she is affiliated and the important economic impact of them. She noted that under the current alcohol license, patrons may drink alcohol only within the upper lobbies and within a limited timeframe. The proposed bill would provide an updated framework for the rules of the license, which would increase service flexibility. She offered further details. She said that beyond economic impact, HB 68 would increase operating revenue that can be funneled back into the theatre, keep the theatre license in line with national standards, and increases the quality of patrons' experiences. Further, she said, "it is a win for local businesses by expanding workforce and for the art industry and the lively downtown experience we all help to curate ...." 3:58:16 PM MR. ANDERSON, in response to a question from Representative Prax regarding Section 9 of the bill and an individual under 16, offered his understanding that there are two different things at play: the responsibility of staff over the age of 21 for supervising the individual under 16 years of age; and a requirement that the underage individual already have the permission of a parent or guardian on file. He added that he thinks that could be, but wouldn't have to be, the same person. 4:00:50 PM REPRESENTATIVE GRAY expressed gratitude to the sponsor for including "my portion of the bill" [from the previous legislature] in HB 68. He then opined that any information that can be given regarding the harms of alcohol is a good thing. 4:02:31 PM CHAIR MINA announced that HB 68 was held over.