HB 234-BREWPUBS; ABC BOARD Number 0164 CHAIR ANDERSON announced that the next order of business would be HOUSE BILL NO. 234, "An Act relating to brewpubs, and continuing the existence of the Alcoholic Beverage Control Board; and providing for an effective date." Number 0168 REPRESENTATIVE LESIL McGUIRE, Alaska State Legislature, spoke as the sponsor of HB 285 and informed the committee that she met with the parties who testified at the last hearing on HB 234, and they have worked out an agreement in the form of a committee substitute (CS). The earlier bill adopted the recommendation by the Legislative Audit Division to limit the scope of the ABC [Alcoholic Beverage Control] Board's power to investigate prostitution and gambling. She said there are compelling arguments that ABC officials are the most likely to discover prostitution and gambling. So that limitation is removed from the proposed CS, she said. Number 0280 REPRESENTATIVE McGUIRE stated that the proposed CS also changes the bill's earlier provisions on brewpubs. After conversations with various business people in the industry, she said they agreed that increasing the allowable number of gallons sold by brewpubs is a major policy change and might blur the line between retailing and manufacturing. She said that she will work with Representatives Rokeberg and Crawford, CHARR [Cabaret Hotel Restaurant & Retailers Association] people, and the various interests during the interim and discuss the whole concept of the three-tiered system - where it is working and where it isn't. She said that it's not just brewpubs and breweries that have issues; there are other areas of the Alaska statute that need to be examined. She thanked the president of CHARR for his hard work; she relayed that he will support the growler issue, [the sale by brewpubs of 5 gallon amounts to customers]. In developing the proposed CS, she and the other interested parties agreed that brewpubs' clients are their patrons, whereas a manufacturer's clients are found all over the state and potentially in other states. REPRESENTATIVE McGUIRE mentioned that an amendment suggested by Representative Rokeberg would extend the sunset date [one year beyond that proposed in the CS] to June 30, 2007. Number 0484 REPRESENTATIVE ROKEBERG moved to adopt CS for HB 234, Version 23-LS0862\S, Ford, 4/10/03, as the working document. There being no objections, Version S was before the committee. Number 0530 REPRESENTATIVE ROKEBERG moved to adopt Conceptual Amendment 1, on page 2, line 13, deleting "2006" and replacing it with "2007". Number 0579 REPRESENTATIVE CRAWFORD objected. He asked for an explanation for continuing the board for one more year. REPRESENTATIVE ROKEBERG said the legislative audit recommended the three-year term so legislators could check on the progress of the board during the many suggested statutory changes. He warned about the "Christmas Tree" of amendments that tend to accumulate on legislation when the lawmakers consider major changes to the ABC board. He noted that HB 234 does not adopt the changes proposed by the legislative audit. The four-year extension of a board by the legislature is standard. He replied to Representative Crawford's question about the changes the bill's sponsor has promised to consider during the interim, saying those are separate from a straightforward extension of the board. Number 0651 REPRESENTATIVE CRAWFORD withdrew his objection. CHAIR ANDERSON, hearing no further objections, stated that Conceptual Amendment 1 was adopted. REPRESENTATIVE McGUIRE stated for the record that Chris Anderson, owner of the Orso Ristorante and Glacier Brewhouse in Anchorage, was not involved in the original bill, although some testimony in the first hearing suggested otherwise. She said Mr. Anderson had told her that he agreed not to be an advocate on the bill. [Mr. Anderson had made an agreement with the ABC Board not to lobby for legislation.] Number 0658 REPRESENTATIVE ROKEBERG moved to report the CS for HB 234, Version 23-LS0862\S, Ford, 4/10/03, as amended, out of committee with individual recommendations and the accompanying fiscal notes. There being no objections, CSHB 234(L&C) was reported out of House Labor and Commerce Standing Committee