SENATE BILL NO. 194 "An Act authorizing delivery of up to two bottles of distilled spirits to a cruise ship passenger or hotel guest." This was the first hearing for this bill in the Senate Finance Committee. Co-Chair Wilken stated this bill, sponsored by Senator Gary Stevens, "allows a licensed, packaged store in Alaska to deliver up to two bottles of distilled spirits in a gift basket to a hotel guest or cruise ship passenger." DOUG LETCH, Staff to Senator Gary Stevens, read the sponsor statement into the record as follows. SB 194, "An Act authorizing delivery of up to two bottles of distilled spirits to a cruise ship passenger or hotel guest", is a straightforward bill that brings distilled spirits on par with wine or champagne. Current Alaska liquor laws allow a package store to deliver not more than two bottles of wine or champagne in a gift basket with a floral arrangement to a cruise ship passenger or a hotel guest. When this statutory change was made, distilled spirits were inadvertently omitted from the bill. SB 194 corrects this omission by allowing a package store to deliver not more than two bottles of distilled spirits in a gift basket with a floral arrangement to a cruise ship passenger or a hotel guest. Senator Hoffman asked about the initial legislation that inadvertently overlooked the inclusion of distilled spirits. DOUG GRIFFIN, Director, Alcoholic Beverage Control Board, Department of Revenue, testified via teleconference from an offnet site that the initial statute was enacted in 1999. He recalled that Senator Torgerson sponsored this bill at the request of an entrepreneur in Seward who wanted to provide this service, although no provision to do so existed. Mr. Griffin noted only one permit has been issued to date and was issued to the Seward business. He emphasized that the Board was conscious of the need to control access to alcohol and prevent widespread delivery and to avoid situations such as taxicabs "shuttling" alcohol to parties, etc. Senator Hoffman noted the sponsor expressed that this was provision was inadvertently omitted and asked if the witness shared this observation. Mr. Griffin was unsure, noting the original legislation was drafted at the direction of Senator Torgerson and the issue of distilled spirits never arose. Senator Olson wanted assurance that this was an inadvertent omission rather than purposeful. BERMAN OBALDIA, Still Spirits, testified via teleconference from an offnet location that the intent is to allow passengers of cruise ships to purchase alcohol in the event such products were not readily available at their home location to share with family and friends. Co-Chair Green asked how beer is related to this statute. Mr. Letch responded that beer is not considered a distilled spirit. Co-Chair Wilken suggested that this could therefore be another unintended omission. Mr. Letch commented that he had given the matter consideration as well. Co-Chair Wilken asked if bill should be held in Committee to allow for and amendment Mr. Letch indicated this would be acceptable. Amendment #1: This amendment inserts a new bill section on page 1, line 4 to read as follows. Section 1. This Act shall be known as the Gary Stevens two- pack act of 2004." Senator Olson moved for adoption Senator Olson WITHDREW the amendment. Co-Chair Wilken asked if Mr. Griffin would be willing to work with the sponsor to address the inclusion of provisions for beer in the legislation. Mr. Griffin affirmed he would. Co-Chair Wilken ordered the bill HELD in Committee.