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].