CS FOR SENATE BILL NO. 16(FIN)                                                                                                
                                                                                                                                
     "An   Act  relating   to  certain   alcoholic  beverage                                                                    
     licenses and permits; relating  to the bond requirement                                                                    
     for  certain alcoholic  beverage  license holders;  and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
9:45:28 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Johnston  MOVED   to  ADOPT  proposed  committee                                                                    
substitute for CSSB 16(FIN),  Work Draft 31-LS0283\H (Bruce,                                                                    
5/14/19)(copy on file).                                                                                                         
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
Co-Chair  Wilson commented  on the  changes. She  noted that                                                                    
the  committee  substitute  (CS)  addressed  surrendering  a                                                                    
license for  renewal and removed the  proposed Fair license.                                                                    
The  bill was  solely a  bill that  grandfathered in  the 11                                                                    
licenses  where renewals  were revoked  due  to new  statute                                                                    
interpretations  by the  Alaska  Alcoholic Beverage  Control                                                                    
(ABC) Board.                                                                                                                    
                                                                                                                                
9:46:44 AM                                                                                                                    
                                                                                                                                
ERIKA  MCCONNELL, DIRECTOR,  ALCOHOL  AND MARIJUANA  CONTROL                                                                    
OFFICE,  DEPARTMENT  OF  COMMERCE,  COMMUNITY  AND  ECONOMIC                                                                    
DEVELOPMENT, introduced herself.                                                                                                
                                                                                                                                
Co-Chair  Wilson spoke  of an  undisclosed  business with  a                                                                    
unique problem  that she had  discussed with  Ms. McConnell.                                                                    
She  asked whether  the establishment  would  be allowed  to                                                                    
sell one of its  licenses even if it took a  year or two and                                                                    
would  not  be  an  issue   for  the  board.  Ms.  McConnell                                                                    
responded that it would not be an issue.                                                                                        
                                                                                                                                
Representative Knopp  asked whether  the CS contained  a new                                                                    
fair license.  Co-Chair Wilson commented  that the  new fair                                                                    
license   was   removed   because  the   Palmer   Fair   was                                                                    
grandfathered in with their  current recreational license in                                                                    
the CS and did not desire  a new type of license. They would                                                                    
remain under the recreational license.                                                                                          
                                                                                                                                
Representative Knopp  noted that Section  4 of the  CS dealt                                                                    
with fair license language.                                                                                                     
                                                                                                                                
9:48:44 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:51:16 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Wilson explained  that the fair license  was in the                                                                    
bill and  she was incorrect.  The language allowed  the fair                                                                    
to  do  what it  had  previously  done  and was  moved  from                                                                    
regulation and  placed in statute.  The bill  disallowed any                                                                    
new entity to  participate or any new type  of activity. She                                                                    
noted  the  date  had  been   changed  to  ensure  that  the                                                                    
businesses  would  be allowed  to  renew  as a  recreational                                                                    
license instead of  the fair license if  preferred. The fair                                                                    
license only  allowed for specific activities.  She provided                                                                    
a clarifying example.                                                                                                           
Representative  Josephson  learned  that  recreational  site                                                                    
licenses  for ski  areas  and bowling  alleys  lack all  the                                                                    
benefits proposed  under the fair license.  He believed that                                                                    
the provision should be cleaned up.                                                                                             
                                                                                                                                
9:53:23 AM                                                                                                                    
                                                                                                                                
SENATOR PETER MICCICHE, SPONSOR, introduced himself.                                                                            
                                                                                                                                
Co-Chair Wilson  asked whether there  was another  bill that                                                                    
 cleaned  up   alcohol statutes  and  dealt  with the  issue                                                                    
identified by Representative Josephson.                                                                                         
                                                                                                                                
Senator Micciche responded in  the affirmative but cautioned                                                                    
that unless the bill passed  in the current session the fair                                                                    
issue would  not be addressed  and that eliminating  the ski                                                                    
areas  and bowling  alleys  would  significantly impact  the                                                                    
current businesses.                                                                                                             
                                                                                                                                
Co-Chair Wilson  indicated that the  state currently  had 11                                                                    
businesses that under no fault of their own were revoked.                                                                       
                                                                                                                                
Representative  Josephson  asked  whether  the  CS  included                                                                    
provisions dealing with  pub licenses to allow  them to move                                                                    
within  noncontiguous areas  on  a  campus. Co-Chair  Wilson                                                                    
responded in the negative.                                                                                                      
                                                                                                                                
9:54:57 AM                                                                                                                    
                                                                                                                                
Representative LeBon MOVED to ADOPT Conceptual Amendment 1.                                                                     
                                                                                                                                
Co-Chair Wilson OBJECTED for discussion.                                                                                        
                                                                                                                                
Representative   LeBon    explained   his    amendment.   He                                                                    
highlighted that  the amendment  was for music  festivals in                                                                    
rural unorganized boroughs to  allow serving alcohol through                                                                    
vendors that hold  a restaurant or eating  place license. He                                                                    
specified that  the event  was held  in Chicken,  Alaska for                                                                    
the last 12 years and  a local restaurant called the Chicken                                                                    
Goat Camp had  been selling beer and wine  during the event.                                                                    
He welcomed committee comments.                                                                                                 
                                                                                                                                
Co-Chair Wilson indicated that the  event was currently able                                                                    
to use  the catering license  for Chena Hot Springs  and had                                                                    
the ability  to sell beer  and wine. She indicated  that the                                                                    
festival desired its own license  and she believed the issue                                                                    
was a  policy call  and should be  entertained in  the other                                                                    
bill. She objected to the amendment.                                                                                            
                                                                                                                                
Senator  Micciche emphasized  that the  current bill  was an                                                                    
attempt  to  literally  save  the  11 business  at risk.  He                                                                    
requested that  the committee  take into  consideration that                                                                    
it was the  last day of the legislative  session. He offered                                                                    
to  help the  other businesses  in the  other bill  but felt                                                                    
that  they could  continue to  operate another  year without                                                                    
interruption.                                                                                                                   
                                                                                                                                
Representative  LeBon asked  if the  Chicken Festival  would                                                                    
lose its ability  to sell beer and wine  to event attendees.                                                                    
Senator Micciche responded that  there were many other types                                                                    
of  Beverage  Dispensary  Licenses  in  the  state  and  the                                                                    
festival had other  choices. He was focused on  the other 11                                                                    
businesses that did not have another choice.                                                                                    
                                                                                                                                
Co-Chair Wilson MAINTAINED her OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: LeBon, Ortiz, Sullivan-Leonard                                                                                        
OPPOSED:  Johnston,   Knopp,  Merrick,   Tilton,  Carpenter,                                                                    
Josephson, Wilson                                                                                                               
                                                                                                                                
Co-Chair Foster was absent from the vote.                                                                                       
                                                                                                                                
The MOTION to adopt Conceptual Amendment 1 FAILED (3/7).                                                                        
                                                                                                                                
9:59:24 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
10:00:25 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
Vice-Chair  Johnston MOVED  to REPORT  HCSCS 16(FIN)  out of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes.                                                                                                      
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
HCS CSSB 16  (FIN) was REPORTED out of committee  with a "do                                                                    
pass"  recommendation  and  with  two  previously  published                                                                    
fiscal notes: FN2 (REV), FN3 (CED).                                                                                             
                                                                                                                                
CS FOR SENATE BILL NO. 16(FIN)                                                                                                
                                                                                                                                
     "An   Act  relating   to  certain   alcoholic  beverage                                                                    
     licenses and permits; relating  to the bond requirement                                                                    
     for  certain alcoholic  beverage  license holders;  and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
10:50:26 AM                                                                                                                   
                                                                                                                                
Co-Chair Wilson MOVED to RECIND action taken on SB 16.                                                                          
                                                                                                                                
There  being  NO  OBJECTION, it  was  so  ordered.  Co-Chair                                                                    
Wilson   explained   that   she    wanted   to   make   sure                                                                    
Representative LeBon's concerns were addressed properly                                                                         
                                                                                                                                
10:50:54 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
11:01:48 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Wilson WITHDREW her RECENSION. There being NO                                                                          
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
11:02:48 AM                                                                                                                   
                                                                                                                                
Co-Chair Wilson RECESSED TO THE CALL OF THE CHAIR [note:                                                                        
the meeting never reconvened].