SENATE BILL NO. 16 "An Act relating to certain alcoholic beverage licenses and permits; and relating to the bond requirement for certain alcoholic beverage license holders." 9:46:42 AM SENATOR PETER MICCICHE, SPONSOR, introduced himself. EDRA MORLEDGE, STAFF, SENATOR PETER MICCICHE, introduced herself. Senator Micciche explained the bill. 9:50:46 AM Senator Wielechowski wondered whether bowling alleys were considered in the legislation. Senator Micciche replied that the bowling alley issue was not currently in the bill, but could be added at the will of the committee. Senator Shower noted several communities that had regular events, and wondered whether the smaller towns would be affected. Senator Micciche replied that the bill would allow for the license at those events. Senator Wilson wondered who would qualify for the fair license in the one borough. Senator Micciche deferred to Ms. Morledge, and felt that it could be adjusted. He expressed concern about the bill becoming a "Christmas tree" for potential untraditional new uses. Ms. Morledge explained that the bill provided for one fair license per borough. Senator Wilson noted that there were a myriad of issues with the Board and the audit recommendations and the reinterpretations of laws. He remarked that the Alaska State Fair had been in operation for almost twenty years. He was afraid that the other vendors that had been operating in good faith, with no issues with local law enforcement, and the efficacy issues that the bill may not cover. Co-Chair von Imhof stated there were representatives from the Board available for questions. Senator Micciche felt that the alcohol statutes "were a mess." Co-Chair von Imhof asked for a Sectional Analysis. 9:58:15 AM Ms. Morledge discussed the Sectional Analysis (copy on file): Section 1: Amends AS 04.11.080 Types of Licenses and Permits to add 'performing arts theater license,' 'fair license,' and 'concert permit.' (Page 1 beginning on Line 5) Section 2: Adds a new section (AS 04.11.205) Performing arts theater license. This section defines this type of license, the biennial fee for the license, and the circumstances for issuance and compliance. (Page 2, beginning on Line 19) Section 3: Amends AS 04.11.210(a) to use the word "activities" rather than "events" as being allowed under a recreational site license. (Page 3, lines 19- 22) Section 4: Amends AS 04.11.210(c) to list sporting activities such as skiing and snowboarding activities are allowable under a recreational site license. (Page 3, lines 23-27) Section 5: Adds a new section (AS 04.11.215) Fair license. This section defines this type of license, the biennial fee for the license, and the circumstances for issuance and compliance. (Page 3, beginning on line 28) Section 6: Adds a new section (AS 04.11.235(a-c)) Concert permit. This section allows the holder of a recreational site license to obtain a concert permit, disallows transfer or renewal, and sets the fee at $50. (Page 4, lines 9-17) Section 7: Amends AS 04.11.330(d) to allow a performing arts theater license renewal, notwithstanding other requirements, if the license was exercised at least once during each of the previous two calendar years. (Page 4, lines 18-22) Section 8: Amends AS 04.11.400(a) to specify that the board may prohibit a new license or relocation of an existing license in accordance with population limits. (Page 4, beginning on line 23) Section 9: Establishes under AS 04.11.400(o) that only one fair license may be issued per borough. (Page 5, lines 24-26) Section 10: Adds the new licenses/permit to the list of those required post notice on the designated premise. (Page 5, beginning on line 27) Sections 11-13: Amends AS 43.60.040 Administration and Enforcement of Tax, to add subsection (i). This section provides an incentive for filing timely monthly tax returns and paying taxes on time over the most recent three years. Specifically, it removes the $25,000 surety bond requirement if all other requirements of compliance are met. (Page 6, beginning on line 21, through page 7, line 21) Section 14: Immediate effective date (Page 7, line 22) 10:03:02 AM JEROME HERTEL, GENERAL MANAGER, ALASKA STATE FAIR, PALMER (via teleconference), spoke in support of the bill. 10:06:39 AM BOB KLEIN, ALASKA BEVERAGE CONTROL BOARD, ANCHORAGE (via teleconference), stated that he was available for questions. He remarked that Senator Wilson described the activities of the Alaska Beverage Control (ABC) Board. 10:09:56 AM Co-Chair von Imhof OPENED public testimony. 10:10:08 AM CODIE COSTELLO, VICE-PRESIDENT, DEVELOPMENT AND COMMUNICATIONS, ALASKA CENTER FOR THE PERFORMING ARTS (via teleconference), spoke in support of the bill. 10:11:20 AM PAUL SHADURA II, SELF, KENAI (via teleconference), spoke in support of the current version of the bill. 10:12:52 AM MARNA SANFORD, SELF, FAIRBANKS (via teleconference), spoke against the current version of the bill. She felt that the bill did not provide clarity for the small events in the state. She stated that she had worked with the Chicken Stock Music Festival. 10:15:26 AM JOSEA BUSBY, SELF, CHICKEN (via teleconference), testified against the current version of the bill. She stated that there should be amendments. Senator Micciche stated that he was interested in the lack of success in using a caterers permit. He wanted to find a solution. 10:18:28 AM KEN PELTIER, SELF, PALMER (via teleconference), spoke in support of the bill. Senator Bishop thanked Mr. Peltier for her volunteer work with music for cancer survivors and veterans. Mr. Peltier replied that he had recently been asked to perform for the troops in Qatar. Co-Chair von Imhof CLOSED public testimony. Senator Wilson noted that the 2014 stated that there were a number of licensees that had issues that may not have been covered in the recreational licenses. He wondered whether the board had sent notices to the entities that their licenses may not continue. 10:21:43 AM ERIKA MCCONNELL, DIRECTOR, ALASKA AND MARIJUANA CONTROL OFFICE (via teleconference), replied that she could not speak to that, but she did not believe that notices were sent at that time. Senator Wilson assumed that the only way that a licensee could know that they would not be noticed was when they applied without knowing that their licenses would be denied. He wondered whether there could be a temporary renewal. Ms. McConnell replied that when the first audit reached the conclusion in 2014, she believed that notices were not sent at that time. The board began to look more closely at the licenses during the renewal period for 2017 and 2018 licenses. At that time, the Board identified several recreational site licenses that they determined were not compliant with the statute. Therefore, the Board told the licensee that they would be renewed for one final time, so there could be two years to examine what to do in the future. Senator Wilson wondered whether the Alaska State Fair had received that notice. Ms. McConnell replied that she did not believe so. Senator Micciche stated that the bill was designed as a "catch all" for the specific license types. He queried the Chicken Stock situation. Ms. McConnell replied that it might be better to examine further research on the issue. Co-Chair von Imhof announced that amendments were due by 5pm on Monday, March 11. She discussed the agenda for the next scheduled meeting. SB 16 was HEARD and HELD in committee for further consideration.