HB 411 - LOCAL OPTION FOR WINERY LICENSE Number 2142 CHAIRMAN ROKEBERG announced the committee's next order of business was HB 411, "An Act relating to issuance of a winery license in a local option area." He noted the presence on teleconference of Mr. Roche, Alcoholic Beverage Control (ABC) Board, to answer questions. Number 2160 REPRESENTATIVE ALAN AUSTERMAN, the bill sponsor, came forward to present HB 411, noting it came from a request by one of his constituents in the village of Port Lions on Kodiak Island. He said this person would like establish a winery on Kodiak Island, making wine from the natural salmonberries and then selling it wholesale. Representative Austerman indicated that, in order to do this, apparently this person would end up having a liquor license and the potential to sell alcohol across the counter. This was something neither the person nor the village wanted to do. Representative Austerman indicated he and his staff had come up with a very small change to the laws, adding a winery license exemption to AS 04.11.491. He referred to the sponsor statement, noting that once this language was added, a local-option election could be sought in the City of Port Lions, or any other city or village in Alaska. He indicated that after the local-option election was held, the individual would apply for a winery license and agree to have the ABC Board ban retail sales, noting the board has the authority to impose such limitations. The sponsor statement read: This legislation adds a winery licensee under AS 04.11.491(a)(2) and (b)(2). By adding this language, an individual could seek a local-option election in any city to ban liquor licenses except a winery, as would be allowed under this amended statute. When the statute is amended and a local-option election held, the individual would then apply for their winery license and agree to have the Alaska Alcoholic Beverage Control Board (ABC Board) ban retail sales under the license in that particular city. The ABC Board has the authority to impose limitations on licenses as per AS 04.11.395. The individual would then have the privilege of selling to persons/entities holding a valid Alaska liquor license. This small change will created many business opportunities, while preserving the integrity of alcohol control. Continued economic development is essential in our village communities if they are to further their goals of self-sufficiency. The State of Alaska needs to persist in expanding opportunities for the establishment of production and marketing cooperatives. Number 2230 CHAIRMAN ROKEBERG asked Representative Austerman if he had tasted this person's salmonberry wine. REPRESENTATIVE AUSTERMAN responded he had not. CHAIRMAN ROKEBERG asked if he had tried someone else's. REPRESENTATIVE AUSTERMAN answered in the affirmative, noting it was excellent. Number 2243 CHAIRMAN ROKEBERG said, then, that there was the potential for a small, successful cottage industry in the village. Chairman Rokeberg asked Mr. Roche if the ABC Board and the Administration had any objections to HB 411. Number 2250 WILLIAM ROCHE, Enforcement Supervisor, Alcoholic Beverage Control Board, testified via teleconference from Anchorage. He stated the board took a neutral position on HB 411, seeing it as a local- option issue. Mr. Roche indicated the reason for the omission of this option was not known, whether it had been intentional or simply an oversight, but he stated that basically adding it would not have any adverse effect. Number 2289 CHAIRMAN ROKEBERG asked if there were further questions or further witnesses. There being none, he stated the public hearing on HB 411 was closed. Number 2297 REPRESENTATIVE HUDSON made a motion to move HB 411 out of the House Labor and Commerce Standing Committee with individual recommendations and the attached zero fiscal note, asking unanimous consent. There being no objections, HB 411 was moved out of the House Labor and Standing Committee.