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." 4:14:37 PM Vice-Chair Johnston MOVED to ADOPT proposed committee substitute for CSSB 16 (FIN), Work Draft 31-LSS0283\C (Bruce, 5/13/19) (copy on file). Representative Josephson OBJECTED for discussion. Co-Chair Wilson reviewed the sectional changes. She reported that Section 1 amended AS 04.11.210 that related to the types of licenses and permits. The section added a fair license and performing arts license to the list. Section 2 added a new section to AS 04.11.205 pertaining to a performing arts theatre license. She noted that the section defined the license. The license currently existed in regulation and the section moved it into statute. She indicated that Section 3 added a new subsection to AS 04.11.210 (d) that grandfathered in previously licensed entities under the recreation site license if they were valid on December 31, 2018, were operating in accordance to the terms of their license, and were disqualified by the Alcoholic Beverage Control Board (ABC). She moved to Section 4 and explained that the new section referred to Fair licenses. The section defined the type of license and established a biennial fee of $800. She related that Section 5 amended AS 04.11.330 (d) to require performing art theatres and recreational site licenses to use their license at least once in two calendar years in order for renewal. She reported that Section 6 included existing language that limited entry to individuals under 21 years of age to be accompanied by a parent or individual over 21 years of age. The individual was permitted entry under a club license issued under AS.04.11. (g) or otherwise provided under (c), (d), or (g), or (i) of the section. Section 7 added provisions for conditions which minors could be permitted on a licensed premise, performing arts theatre or golf course with alcohol service. Section 8 amended AS 04.21.065 (a) that required posting a notice of the license on the premise. Sections 9 through 11 amended AS 43.60.040 relating to the administration and enforcement of taxes. The provisions provided incentives for on-time filing for the most recent three years. She specified that the provisions removed a $25 thousand surety bond requirement if all other requirements were met. The remainder of the bill added effective dates sections which included retroactivity. 4:18:28 PM Co-Chair Wilson OPENED public testimony. Co-Chair Wilson indicated that the committee would hear additional public testimony the following morning. CHRIS MAHER, ALASKA TRAVEL ADVENTURES, JUNEAU, provided his testimony. He elaborated that the company was in business for 40 years and operated the Gold Creek Salmon Bake. The salmon bake served beer and wine for 40 years under the recreational site license, which also allowed them to provide music for its guests. They were given notice three years prior that their license would be revoked, and they purchased a restaurant license. In order to obtain the restaurant license, he had to surrender to recreational site license. He explained that the current version of the bill limited music to the hours of 3:00 p.m. to 11:00 p.m. The prior version of the bill allowed music from 11:00 a.m. to 7:00 p.m. He had hoped to request an extension to 8:00 p.m. but was astonished to find that he could not play music for his lunch guests. He requested an amendment that would enable him to regain his recreational site license. Co-Chair Wilson deduced that if his license was reinstated, would he be able to play music at lunch time. Mr. Maher responded in the affirmative. Co-Chair Wilson appreciated the testimony. She was unaware that some of the grandfathered licenses were surrendered. Representative Merrick asked for the hours of operation for the salmon bake. Mr. Maher responded that the hours varied depending on the cruise ship schedule but was roughly 10:30 a.m. to 9:30 p.m. He hoped that music would be allowed from 11:00 a.m. to 11:00 p.m. The timeframe would encompass all his customers. Co-Chair Wilson reiterated her surprise upon hearing some businesses had to surrender their prior license in order to comply with the boards new regulatory interpretation. She pledged to address the issue. 4:24:45 PM ROBERT BREWSTER, CEO, ALAKSA CLUB, ANCHORAGE (via teleconference), spoke in favor of the bill. He indicated that the club had a recreational site license for 8 years. He related that the club complied with all aspects of the license and operated their business model to include serving beer and wine. The ABC board forced the club to stop serving alcoholic beverages for 11 months while the issue was under appeal. An administrative judge reinstated their license. The judge ruled that the clubs constitutional rights to equal protection was violated and was inappropriate for the license to be revoked while the issue was under appeal. He noted that he was once again informed that his license would not be renewed. He feels that his and other businesses were subjected to devastating results due to the boards change in licensing. He stated that his and other businesses applied for the license and operated responsibly and in good faith. He asked the committee to correct the situation regarding non-renewals that served no valid public purpose while harming responsible businesses. He asked the committee to pass the bill. Co-Chair Wilson asked whether the committee substitute (CS) version of the bill would rectify his situation. Mr. Brewster responded in the affirmative. 4:28:41 PM Representative Knopp asked if the language that allowed music from the hours of 3:00 p.m. to 11:00 p.m. was eliminated from the CS. Co-Chair Wilson was unaware that certain businesses had surrendered their licenses. She thought that if language was added to include reinstatement of the surrendered licenses it would cover all the activities that were previously allowed. She conveyed that if the activity under the license changed then the licenses would not be renewed. However, she understood that the current situation involved reinterpretation by the ABC Board that caused the businesses to lose their license and the licensees were operating in compliance with the license. Representative Knopp wanted to offer an amendment that would allow music from 11:00 a.m. to 11:00 p.m. He thought that the 3:00 p.m. to 11:00 p.m. language was limiting and nonsensical. Co-Chair Wilson concurred with the amendment. She also wanted to address the surrendered license issue. Representative Merrick cited Mr. Mahers testimony regarding a 9:30 P.m. end time. She wondered whether the 9:30 p.m. end time was more appropriate in case the location was in a residential area. Mr. Maher responded that the company had been in business at the current sight for over 25 years without any problems. He believed that noise ordinances regulated the concern. Representative Merrick did not want to cause any problems. Co-Chair Wilson relayed that city ordinances trumped state statute. 4:32:59 PM Vice-Chair Ortiz asked about the amendment process for SB 16. Co-Chair Wilson announced that amendments were due by the following mornings meeting. She discussed the amendment process. CSSB 16(FIN) was HEARD and HELD in committee for further consideration. Co-Chair Wilson reviewed the agenda for the following day's meeting at 9:00 a.m.